Final Trade: Sensex ends flat, Nifty below 24,150; IT stocks gain, FMCG drags

Indian equity benchmarks ended the session flat on November 11 after a choppy day of trade. Sensex closed marginally lower, while the Nifty settled below the 24,150 mark. Gains in IT and power stocks helped offset losses in FMCG, healthcare, and metal sectors.

Despite a positive start in the first half, the Nifty 50 and Sensex ended flat, weighed down by profit-booking in heavyweight stocks like Reliance Industries and Bharti Airtel.

The Nifty 50 declined by 0.03 per cent to settle at 24,141 points, while the S&P BSE Sensex dipped by 0.07 per cent, closing at 79,433. Midcaps and small caps faced steeper losses, with the Nifty Midcap 100 falling 0.88 per cent, and the Nifty Smallcap 100 dropping 1.22 per cent, as overheated valuations prompted selling pressure.

Sector-wise mixed performance  
The IT sector continued its rally, with Nifty IT gaining 1.28 per cent, supported by a strong U.S. dollar and expectations of increased U.S. IT spending. Nifty Bank rose 0.61 per cent, aiding recovery attempts. However, sectors like Nifty Media, Nifty Pharma, and Nifty Consumer Durables closed with losses ranging from 0.65 per cent to 1.3 per cent.

Top movers and laggards
Asian Paints was the biggest loser, plunging 8.17 per cent on weak Q2 earnings, marking its lowest close since April 2021. Britannia Industries also dropped 5.4 per cent ahead of its Q2 results. On the positive side, Power Grid Corporation surged 4.3 per cent on strong quarterly performance, while Trent rebounded by 2.9 per cent after consecutive losses.

Outlook remains cautious 
Analysts attributed the subdued sentiment to weak Q2 earnings and concerns over inflation, which could keep RBI interest rates elevated until early 2024. Market participants will closely watch upcoming CPI data for further cues.

Vinod Nair, Head of Research, Geojit Financial Services, says, the actions of FIIs are dominating the current market momentum, which is backed by a weak set of earnings and expectations from Trump policy. The risk of further downgrades in Nifty earnings casts clouds over investor sentiment, while the IT sector continued to outperform due to the strong US dollar and in anticipation of a revamp in US IT spending. India is also looking forward to the CPI data with a muted view as food prices are likely to be higher on MoM basis, essentially forging RBI to hold the interest rates in the short term.