Indian equity markets ended marginally higher on Thursday, November 12, as gains in financial stocks helped benchmark indices recover from a subdued opening. The BSE Sensex closed 31.61 points, or 0.04%, higher at 81,911.01. The NSE Nifty 50 settled at 25,299.35, gaining 44.30 points, or 0.18%, and remained close to the psychologically important 25,300 mark.
The session witnessed considerable movement, with both indices recovering after opening in the red. Buying in banking and financial services stocks provided support, while weakness in select automobile, information technology and consumer stocks restricted the market’s advance.
The modest gains followed Wednesday’s strong rally, when the Sensex had surged 772.75 points and the Nifty advanced 210.40 points. Investors appeared cautious after the recent sharp rise, with some choosing to lock in profits at higher valuations.
Financial stocks remained among the biggest contributors to Thursday’s market gains. Bajaj Finance, Bajaj Finserv and Shriram Finance attracted buying interest, helping the benchmark indices recover from their early losses.
Bajaj Finance was particularly strong, gaining around 3.4% after announcing a share sale exceeding $1 billion. The move attracted investor attention as the company continued to strengthen its capital position.
Bajaj Finserv also advanced, while other financial stocks benefited from positive sentiment towards the banking and lending sectors. HDFC Life Insurance and SBI Life Insurance were among the stocks that witnessed buying interest during the session.
The financial services segment emerged as one of the strongest-performing areas of the market. The Nifty Financial Services index gained around 1.4%, while broader market indices also remained positive.
On the losing side, Mahindra & Mahindra, Hindustan Unilever, Bharti Airtel and UltraTech Cement faced selling pressure. Automobile stocks were particularly weak, with the sector ending lower after an extended period of gains.
Overseas investors have purchased approximately $6.43 billion worth of Indian shares during November, marking their strongest monthly inflows in more than two years. The sustained buying has helped improve market sentiment after a prolonged period of underperformance in Indian equities.
Foreign portfolio investors also made substantial purchases in the previous session, with provisional data indicating net buying worth approximately ₹12,563 crore on Wednesday.
The continued return of foreign capital has supported large-cap stocks, particularly financial companies, and helped the domestic market maintain its upward trajectory.
India’s improved positioning among global equity markets has also contributed to investor confidence. The country’s stock market has regained its position as the world’s fifth-largest equity market, moving ahead of Taiwan in terms of market value.
Global brokerage HSBC has upgraded its view on Indian equities to overweight, while Citi and Bernstein have also raised their Nifty targets, reflecting improving confidence in the market’s prospects.
Brent crude slipped around 1% to approximately $92 per barrel during Thursday’s session. Softer international oil prices are generally favourable for India, which depends heavily on imports to meet its energy requirements.
Lower crude prices can help reduce the country’s import bill, ease inflationary pressures and improve the operating environment for oil-dependent industries.
A sustained decline in crude prices could also provide some relief to sectors such as aviation, paints, chemicals and logistics, where fuel and transportation expenses account for a significant share of operating costs.
Investors also tracked developments in West Asia and the possibility of progress in international peace efforts. Any improvement in geopolitical conditions could help reduce uncertainty in global energy markets.
Despite supportive global and domestic factors, investors continued to book profits after the recent rally.
The Sensex and Nifty have gained approximately 10% during November, making some traders cautious about chasing stocks at higher levels.
The benchmarks had already recovered significantly from their earlier lows, and the latest advance has brought several stocks closer to their recent highs. This has encouraged investors to reassess valuations and secure gains.
Market breadth remained relatively positive, with broader market indices also recording gains during the session. Small-cap and mid-cap stocks performed better than some of the benchmark constituents, indicating continued interest beyond large-cap shares.
However, selling in automobile and select heavyweight stocks prevented the indices from registering stronger gains.
Investors will now track upcoming domestic inflation data, global market movements, crude oil prices and foreign institutional investment trends for further direction.
India’s October inflation figures are particularly important, as they could influence expectations surrounding the Reserve Bank of India’s monetary policy.
Developments in the US economy, global interest rates and geopolitical conditions will also remain important factors influencing foreign investment flows.