Benchmark equity indices Sensex and Nifty ended marginally lower in the special Muhurat trading session on Sunday, snapping an eight-year Diwali winning streak as investors booked profits following a seven-session rally.
After opening on a positive note during the special session marking the beginning of Hindu calendar year Samvat 2083, the 30-share BSE Sensex failed to sustain its gains and declined 28.62 points, or 0.04 per cent, to settle at 80,999.40.
The benchmark had climbed 414.09 points, or 0.51 per cent, to an intraday high of 81,442.11 before surrendering its gains. Of the 30 Sensex constituents, 16 ended higher while 14 closed lower.
The 50-share NSE Nifty slipped 43.95 points, or 0.18 per cent, to finish at 24,986.40, falling below the psychologically important 25,000 mark after a positive opening.
Both benchmark indices ended their eight-year winning run in Diwali Muhurat trading sessions, having registered gains on the occasion every year since 2018.
๐ฃ๐ฟ๐ผ๐ณ๐ถ๐-๐ฏ๐ผ๐ผ๐ธ๐ถ๐ป๐ด ๐ต๐ฎ๐น๐๐ ๐ฟ๐ฎ๐น๐น๐
Market analysts attributed the marginal decline to profit-taking after the sharp gains recorded in the preceding seven trading sessions.
"The Indian market closed marginally lower on Sunday's special Muhurat Trading session, snapping its seven-session winning streak that had powered the strongest weekly rally since February 2021," said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
He said the Nifty opened higher at 25,070 and touched an intraday high of 25,132 before declining 0.18 per cent to settle at 24,986.40.
The Sensex also eased 28.62 points to close at 80,999.40.
According to Ponmudi, the modest consolidation reflected natural profit-booking following an exceptional week of gains rather than a significant change in market sentiment.
On Friday, the final trading session of Samvat 2082, the Sensex had surged 1,718.01 points, or 2.17 per cent, to settle at the day's high of 81,028.02.
The Nifty had rallied 493.75 points, or 2.01 per cent, to finish at 25,030.35.
Over the preceding seven consecutive sessions, the Sensex gained 7,781.99 points, or 10.62 per cent, while the Nifty advanced 2,331.5 points, or 10.27 per cent.
๐๐๐๐ผ, ๐๐ง ๐๐๐ผ๐ฐ๐ธ๐ ๐ฑ๐ฟ๐ฎ๐ด ๐ถ๐ป๐ฑ๐ถ๐ฐ๐ฒ๐
Among the Sensex constituents, Mahindra & Mahindra, InterGlobe Aviation, Trent, Infosys, Bharti Airtel and Axis Bank were among the major laggards.
Sun Pharma, Tata Steel, Maruti Suzuki and Power Grid were among the prominent gainers, helping limit losses in the benchmark index.
The broader market, however, displayed greater resilience during the special session.
The BSE SmallCap Select index climbed 1.18 per cent, while the MidCap Select index gained 0.22 per cent, indicating continued buying interest beyond large-cap stocks.
Among BSE sectoral indices, Realty, Focused IT, Top 10 Banks, Consumer Durables, PSU Bank, Bankex, Private Banks and IT ended lower.
Healthcare, Industrials, Capital Goods, Hospitals and Housing Finance were among the sectors that registered gains.
Despite the marginal decline in benchmark indices, investors' wealth increased by Rs 2.60 lakh crore, taking the total market capitalisation of BSE-listed companies to Rs 5,05,67,743.40 crore, equivalent to approximately USD 5.37 trillion.
๐ฆ๐ฎ๐บ๐๐ฎ๐ ๐ฎ๐ฌ๐ด๐ฎ ๐ฒ๐ป๐ฑ๐ ๐๐ถ๐๐ต ๐น๐ผ๐๐๐ฒ๐
The previous Hindu calendar year, Samvat 2082, proved challenging for benchmark equity indices despite the sharp recovery witnessed towards its conclusion.
During the year, the Sensex declined 3,398.32 points, or 4 per cent, while the Nifty lost 838.25 points, or 3.24 per cent.
However, the strong rally in the final seven sessions helped markets recover a significant portion of their earlier losses.
Foreign Institutional Investors (FIIs) purchased equities worth Rs 13,749.82 crore on Friday, according to exchange data, providing support to the market ahead of the new Samvat year.
The positive trend in overseas markets also contributed to investor sentiment, with US equity markets ending mostly higher on Friday.
๐๐ ๐ฝ๐ฒ๐ฟ๐๐ ๐ผ๐ฝ๐๐ถ๐บ๐ถ๐๐๐ถ๐ฐ ๐ผ๐ป ๐ผ๐๐๐น๐ผ๐ผ๐ธ
Despite Sunday's marginal losses, market experts expressed optimism about the prospects for Indian equities during Samvat 2083.
Raamdeo Agrawal, Chairman and Co-Founder of Motilal Oswal Financial Services, said the market had the potential to deliver substantial returns by the next Diwali following two years of stagnation.
"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," Agrawal said.
He identified a potential decline in crude oil prices, currency stability, the return of foreign institutional investors, moderation of enthusiasm surrounding artificial intelligence and broad-based corporate earnings growth as factors that could support higher valuations.
However, analysts cautioned that the market's trajectory would continue to depend on domestic and international developments.
"As the new Samvat year begins, market direction will depend on corporate earnings, domestic growth, foreign fund flows, global developments and crude oil movements," said Gaurav Garg, Head of Research at Lemonn.
๐ ๐๐ต๐๐ฟ๐ฎ๐ ๐๐ฟ๐ฎ๐ฑ๐ถ๐ป๐ด ๐บ๐ฎ๐ฟ๐ธ๐ ๐ป๐ฒ๐ ๐๐ฒ๐ฎ๐ฟ
Muhurat trading is a symbolic stock market session held annually on Diwali to mark the beginning of the new Hindu calendar year.
The special session is considered auspicious by many investors, who traditionally make investments during the designated trading period in the belief that it will bring prosperity and financial growth.
Unlike regular trading sessions, which operate from 9.15 am to 3.30 pm, Muhurat trading is conducted for a shorter duration.
While Sunday's session ended with marginal losses for the benchmark indices, the gains in broader market segments and the increase in overall investor wealth reflected selective buying interest.
Market participants will now assess corporate earnings, foreign fund flows, global market trends and crude oil prices as regular trading resumes in the new Samvat year.