Sensex, Nifty close flat as investors await October CPI data; realty, banking stocks gain

Buying in financial and realty stocks helped offset profit-booking in IT, FMCG and automobile shares following the recent sharp rally.

The Nifty 50 index closed at 25,299.35, gaining 44.30 points or 0.18 per cent, while the BSE Sensex ended at 81,911.01, up 31.61 points or 0.04 per cent.

Vinod Nair, Head of Research at Geojit Investments, said buying in financial and realty stocks supported the market, while investors booked profits in sectors that had witnessed a recent rally.

"Indian equities traded near flat as buying in financials and realty offset profit-taking in IT, FMCG and automobiles following the recent sharp rally. Strong foreign inflows remained the key support, reinforcing a large-cap financial rotation rather than broad index chasing. Mid- and small-caps nevertheless outperformed, signalling firmer underlying risk appetite despite muted benchmarks. Softer crude provided macro relief, though global technology volatility and a hotter-than-expected US inflation print kept global yields and rate expectations in focus, limiting scope for broader rerating," he said.

In the broader market, the Nifty 100 gained marginally by 0.02 per cent. The Nifty Smallcap 100 surged by more than 1 per cent, while the Nifty Midcap 100 gained 0.65 per cent, indicating stronger performance in smaller companies compared to benchmark indices.

Among sectoral indices on the NSE, the Nifty Realty index surged 4 per cent, while the Nifty Media index gained 2.48 per cent. The Nifty PSU Bank index advanced 1.39 per cent and the Nifty Private Bank index rose 0.74 per cent. The Nifty Consumer Durables index also gained 0.35 per cent.

On the other hand, the Nifty Auto index declined 1.28 per cent, while the Nifty FMCG index lost 0.87 per cent. The Nifty IT index fell 0.51 per cent, the Nifty Metal index declined 0.15 per cent and the Nifty Pharma index lost 0.42 per cent.

Nair said, "Domestically, attention now shifts to India's October CPI, where the trajectory of food prices will be critical following elevated September inflation. Near term, the market should remain selectively constructive, with direction hinging on sustained foreign liquidity, inflation trends and whether financial-led gains broaden without stretching valuations."

Meanwhile, Brent crude oil was trading at USD 92.65 per barrel at the time of reporting. Gold prices declined by more than 1.5 per cent to Rs 1,37,565 per 10 grams for 24 karats, while silver prices fell 1.83 per cent to Rs 1,81,142 per kg.

Pranjal Ghate, Economist at Brickwork Ratings, said the rupee slipped to 93.77 against the US dollar in early trade, weighed down by a stronger dollar and rising US Treasury yields.

"While the rupee slipped to 93.77 against the US dollar in early trade today, weighed down by a stronger dollar and rising US Treasury yields, these near-term fluctuations should not overshadow the broader recovery in the currency over recent weeks, bringing it back to levels last seen in April 2026. India is increasingly being viewed as a potential 'AI hedge' by global investors, with any further unwinding of crowded US and global AI-related trades potentially supporting foreign equity inflows into Indian markets," he said.

In other Asian markets, most indices closed lower on Thursday. Japan's Nikkei 225 declined 0.99 per cent to 60,650, Singapore's Straits Times fell 0.14 per cent to 5,282, and Hong Kong's Hang Seng index lost 1.46 per cent to 23,967. Taiwan's weighted index declined 2.70 per cent to 43,091, while South Korea's KOSPI index fell 0.60 per cent to 5,342. (ANI)