Indian stocks began November on a flat note as both benchmark indices ended Monday’s session with modest gains. The lack of fresh catalysts failed to reignite bullish optimism, while stock-specific action continued to dominate the Street amid ongoing Q2 earnings reactions.
Although the markets opened slightly in the red, they managed to close higher, with the Nifty 50 rising 0.16% to 25,763 and the S&P BSE Sensex edging up 0.05% to 83,976.
The broader markets, however, outperformed the benchmarks, with the Nifty Midcap 100 index climbing 0.77% and the Nifty Smallcap 100 advancing 0.72%, indicating that market breadth still favored the bulls.
Despite the market’s lack of momentum, PSU banking stocks continued to attract investors’ interest, driven by their healthy Q2 performance, pushing the Nifty PSU Bank index to a fresh peak of 8,373, up nearly 2%.
Vinod Nair, Head of Research, Geojit Investments Limited, said,”The domestic market ended on a marginal positive note as profit booking was visible at the higher levels due to the absence of fresh domestic triggers. While the broader market outperformed since the quarterly earnings are steering investors’ preference to take a short- to medium-term view.”
“The PSU Banking index continued to be a preferred bet for investors, led by healthy earnings and improving asset quality. In contrast, IT stocks declined amid fading expectations of a U.S. Fed rate cut, while a trade truce between the US and China eased the demand for safe haven assets,” he further added.
