Sensex, Nifty end Muhurat Trading session in red for first time in 9 years. Are the bulls losing steam?

Sensex and Nifty erased all early gains and closed in the red following the Muhurat Trading session on Sunday, marking the first time the benchmark indices ended with losses during the special Diwali session in 9 years.

The benchmark indices had opened in the green for the special one-hour trading session on Sunday, but slipped into the red at the fag end of the session to close near day’s lows. Sensex dropped around 29 points to close at 80,999 while Nifty 50 lost 44 points to end at 24,986.

Sensex, Nifty snap 6-day and 9-year winning streaks

Sensex and Nifty have also snapped a six-day gaining streak. Last week alone, Sensex surged a whopping 6,569 points while Nifty skyrocketed nearly 9%. The rally has added nearly Rs 29 lakh crore to the total market capitalisation of all companies listed on BSE in just one week, pushing it above Rs 500 lakh crore mark.


The benchmark indices had last closed in the red following the Muhurat Trading session in 2017 when Sensex dropped 0.6%. Prior to that, Sensex and Nifty closed in the red with marginal losses in 2016. Overall, the benchmark indices have closed in the red only two out of past 10 times during the special Muhurat Trading session.

Also read | Muhurat Trading 2026: Sensex, Nifty has 80% strike rate. Will this trend continue as Samvat 2083 kicks off?

Analysts had warned of profit booking following the sharp spike this month so far. After such a sharp run, intermittent profit booking cannot be ruled out, but the near-term bias stays constructive, said Vinod Nair, Head of Research, Geojit Investments.

Osho Krishan, Chief Manager of Technical & Derivatives Research at Angel One had also warned of some profit booking, but said that this should be viewed as a healthy consolidation to sustain the broader bullish trend. On the downside, the 24,770-24,500 zone was expected to offer immediate cushion for Nifty 50, while the bullish gap around 24,300 remains a crucial support zone. On the upside, 25,150 may act as an intermediate hurdle, followed by resistance near 25,400.

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Samvat 2083 kicks off

While Samvat 2083 has kicked off on a negative note, analysts remain optimistic after two years of consolidation. “After two years of stagnation, market has the potential to give investors bumper returns by next Diwali, because of confluence of low valuation and high earnings growth,” said Raamdeo Agrawal, Chairman and Co-Founder of Motilal Oswal Financial Services, in his Muhurat Trading message.

The market expert said that a potential crash in oil prices, a stable currency, the return of foreign investors, moderation in the artificial-intelligence hype and broad-based earnings growth could support higher valuation multiples.

Also read | Market may deliver bumper returns by next Diwali as valuations and earnings align, says Raamdeo Agrawal

As Dalal Street enters Samvat 2083, market valuations have corrected and Indian stock market is not looking as expensive as it was around a year ago, veteran banker Uday Kotak said. “As the overhang of excessive investment in AI corrects, we do hope that the foreign portfolio investments stabilize. And we have to keep in mind that even today, foreign portfolio investments are about $700 billion outstanding. India is subject to those flows which will also have an impact on the stock market price,” he added.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.