Sensex Gains Over 500 Points, Nifty Tops 24,650 as Bullish Run Extends to Seventh Session; SMIDs Decline

Sensex Jumps Over 500 Points, Nifty Reclaims 24,650 as Rally Extends to Seventh Day; Midcap and Smallcap Stocks Slide

Indian stock markets continued their upward run on Friday, November 6, with the Sensex gaining more than 500 points and the Nifty moving back above 24,650. Strong buying in heavyweight IT, banking and automobile shares lifted the benchmark indices, even as midcap and smallcap stocks remained under selling pressure.

The market witnessed a sharp reversal after opening in the red, recovering from early losses despite a major sell-off in US equities and weakness across Asian markets. Heavyweight stocks attracted buying interest, helping the frontline indices maintain their positive momentum for a seventh consecutive session.

At 9:56 am, the BSE Sensex was trading at 79,853.13, up 543.12 points or 0.68%. The index opened at 79,413.66, fell to an early low of 79,016.05 and subsequently climbed to 79,959.48.

The NSE Nifty 50 was quoting at 24,661.90, gaining 125.30 points or 0.51% from its previous close of 24,536.60. The index touched an intraday high of 24,673.55.

IT, Auto and Banking Shares Lead Gains

Information technology stocks led the recovery, with the Nifty IT index advancing 1.56%. Strong performances by major IT companies helped offset weakness in other pockets of the market.

Mahindra & Mahindra topped the Sensex gainers, rising 5.27%, followed by Titan, which advanced 2.86%. TCS gained 1.92%, Infosys climbed 1.82% and HCL Technologies added 1.63%.

Among other major gainers, ICICI Bank rose 1.38%, Bharti Airtel gained 1.28%, Sun Pharma advanced 1.18%, ITC increased 1.08% and Tech Mahindra moved up 1.02%.

The Nifty Private Bank index gained 0.75%, while the Nifty Auto index advanced 0.61%. Healthcare and pharmaceutical stocks also traded higher.

On the other hand, Power Grid was the biggest laggard among Sensex stocks, falling 2.24%. Asian Paints declined 1.28%, BEL dropped 1.15% and Tata Steel lost 0.96%.

Broader Markets Fail to Join the Rally

Despite the strength in benchmark indices, the broader market continued to witness profit-booking, with midcap and smallcap stocks extending their losses.

The Nifty Midcap 100 declined 0.76%, while the Nifty Smallcap 100 dropped 1.38%. The Nifty Midcap 50 and Nifty Smallcap 50 also slipped 0.60% and 1.30%, respectively.

The Nifty Next 50 fell 0.84%, while the Nifty 500 was down 0.11%.

The divergence between frontline and broader indices indicates that investors are favouring selected large-cap stocks while reducing exposure to smaller companies following the recent sharp market advance.

• India VIX Rises 7.5% Amid Volatility Concerns
• Market volatility remained a concern, with the India VIX jumping 7.5% to 16.75.

The increase in the volatility gauge, even as the benchmark indices advanced, points to continued uncertainty among investors. Global market movements and the possibility of further corrections in individual stocks remain important factors influencing sentiment.

US and Asian Markets Witness Heavy Selling

Indian equities recovered despite a weak global backdrop. US markets experienced a steep decline on Thursday, with technology and AI-related stocks facing significant selling pressure.

The Nasdaq Composite plunged 5.5%, while the S&P 500 fell 4.4% and the Dow Jones Industrial Average declined 3.4%.

Asian markets also remained under pressure on Friday, with Japan’s Nikkei 225 and South Korea’s Kospi recording sharp losses. Concerns over expensive technology valuations and the sustainability of the AI-led market rally contributed to the negative sentiment.

Heavy FII Buying Supports Domestic Market

Foreign institutional investors provided a significant boost to Indian equities on Thursday, purchasing shares worth nearly Rs 15,000 crore.

This represented their biggest single-day net buying in more than a year and supported the recovery in domestic benchmark indices.

The return of substantial foreign inflows has strengthened market sentiment. However, continued selling in midcap and smallcap stocks suggests that investors remain selective despite the renewed buying interest.

Will the Seven-Day Winning Streak Continue?

The Sensex and Nifty entered Friday’s session after gaining more than 8% over the previous six trading sessions. The latest advance reflects sustained buying in heavyweight stocks, particularly in the IT, banking and automobile sectors.

However, the weakness in broader indices and the sharp rise in India VIX indicate that the market recovery is not uniform.

Investors will be closely watching global market trends, foreign fund flows and sectoral performance to assess whether the benchmark rally can sustain its momentum while broader-market stocks continue to face profit-booking.