Sensex & Nifty fall in Muhurat trade for first time since 2017

Mumbai: Indian equities closed marginally lower in Muhurat trading that marked the beginning of Samvat 2083, with the Sensex and Nifty recording their first declines on the special Diwali session since 2017. The Sensex ended at 80,999.40, down 28.62 points, or 0.04%, while the Nifty closed at 24,986.40, shedding 43.95 points, or 0.18%, from Friday's close. Both indices had last ended the Muhurat session lower in October 2017, when they fell 0.6% each.

Muhurat trading is a symbolic one-hour session in which domestic retail traders participate by making token transactions. Making money during the auspicious session is traditionally considered a good omen for the year ahead.

Despite the day's decline, market sentiment has shown signs of improving lately. The Nifty 50 gained more than 8% last week, its biggest weekly rise since February 2021. A correction in artificial intelligence-related stocks in the US and South Korea has also renewed investor interest in Indian equities.

Foreign investors have turned buyers of domestic shares in recent days, with net purchases of $3.6 billion so far in November. This has reduced their net withdrawals for the year to $26.8 billion. The broader market outperformed the benchmarks. The BSE 150 MidCap index rose 0.4% to close at 16,447.27, while the BSE 250 SmallCap index gained 1.33% to end at 6,914.10.

Market breadth was positive, with rising stocks outnumbering declining ones on the BSE by 3,253 to 947, while 254 shares ended unchanged.

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Among sectoral indices, Nifty Pharma led the gains, rising 1.7%. Nifty Metal and Nifty Cement advanced 0.4% each. Nifty Realty declined 0.7%, while Nifty Bank and Nifty IT fell 0.4% each. Nifty Consumer Durables shed 0.3%.

Indian equities remained volatile in Samvat 2082, with the Sensex and Nifty declining around 4% and 3%, respectively. Both indices saw their biggest decline since 2011. Trade-related concerns, elevated valuations, uncertainty over AI-related stocks and rising crude oil prices amid the US-Iran conflict weighed on sentiment. However, analysts expect Samvat 2083 to be relatively better, supported by easing geopolitical tensions and lower crude oil prices.

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"There is a possibility of geopolitical tensions easing and crude oil prices remaining moderate over the next few months, which could support markets. However, volatility is likely to persist until there is greater clarity on the global political and policy environment," said Sunny Agrawal, head of fundamental retail research at SBICAPS Securities.