Indian equity benchmarks began Thursday’s session on a softer note, signalling a brief pause in the market’s recent upward momentum even as global cues remained positive and inflation data painted a favourable macroeconomic picture. At 9:21 am, the Sensex slipped 143 points to 84,323, while the Nifty50 fell 60 points to 25,816. Broader markets also came under pressure, hinting at profit booking after a sustained rally.
India’s retail inflation dropped sharply to 0.25% in October, the lowest ever recorded, raising expectations of an RBI rate cut in December. Despite this positive data, analysts say the market now needs stronger catalysts to push towards fresh all-time highs.
Key Stocks Dragging the Market
Five heavyweights—Bharti Airtel, Reliance Industries, ITC, SBI, and Hindustan Unilever—contributed significantly to the morning decline. Analysts attribute the mild correction to valuation concerns and the absence of strong domestic triggers.
Experts Expect Consolidation Phase
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that with the Bihar election outcome largely priced in, the market currently lacks political triggers capable of lifting indices higher. He added that a potential India–US trade deal, combined with record-low inflation, improves the case for monetary easing—but weak transmission remains an obstacle.
He expects a near-term consolidation, with sharp moves likely when new cues surface. “Positive triggers happening simultaneously can lead to short covering and push the market higher, but sustaining that momentum may be hard given FII selling and stretched valuations,” he said.
Technical Indicators Flash Caution
Anand James, Chief Market Strategist at Geojit, pointed to the formation of a doji pattern in the previous trading session—a signal of market hesitation. While oscillators still support an upside, he sees possible targets at 26,130–26,550, provided Nifty stays above 25,840. A drop below 25,630, however, may shift momentum bearish.
Bullish Tone Retained by Some Analysts
Prashanth Tapse of Mehta Equities maintained a positive outlook, noting that Nifty is “now eyeing its all-time high of 26,277,” supported by improving global sentiment, softer inflation, and hopes of progress on a US–India trade pact. Despite FIIs offloading nearly ₹1,750 crore on Wednesday, he sees strong support near 25,500, with resistance around 26,107.
What Investors Should Watch
Markets will closely track Bihar election results on Friday, which may influence short-term sentiment. Several stocks—including Adani Enterprises, BSE, Tata Motors CV, BLS International, Zaggle, GSFC, and Reliance Infra—are likely to remain active following strong quarterly performances.
With strong macro data but limited immediate triggers, equities may continue to trade cautiously, balancing optimism from global markets with the need for fresh domestic catalysts to revive the rally.
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