Closing Bell: Markets end first session after Diwali in red: Nifty closes below 19,500, Sensex down 326 pts; IT and Consumer Durables key laggards, PSU banks buck the trend

The benchmark equity indices ended Monday’s trading session in the negative territory. The NSE Nifty 50 dropped 82 points or 0.42% to settle at 19,443.55, while the BSE Sensex dropped 325.58 points or 0.50% to 64,933.87.Bank Nifty index dropped 105.40 points or 0.24% to settle at 43,891.25.

The broader indices ended largely in negative territory, with down fall led by Consumer Durable and IT stocks. Smallcap and Midcap stocks gained marginally among the other sectoral indices while Consumer Durables and IT stocks shed.

Nair also said that the Indian Rupee’s weakness keeps FIIs cautious. However, the market’s downside is limited by strong earnings, economic stability, and domestic institutional flows. A potential reversal is likely, as domestic October CPI inflation is expected to moderate. Notably, public sector banks are outperforming due to strong credit growth, improved asset quality, and robust balance sheets, and this trend is expected to persist.

Coal India, Eicher Motors, Hindalco, Mahindra & Mahindra and BPCL were the top gainers on the NSE Nifty 50, while the laggards included SBI Life Insurance, Bajaj Finance, Grasim, Infosys and Nestle India.

The Indian Volatility Index (India VIX) closed down by 1.41 %.