Sensex and Nifty Slip as Profit-Booking Hits IT Stocks After Seven-Session Rally

Indian benchmark indices fell in early trade on Monday, 9 November, as investors booked profits in information technology stocks after a seven-session rally that had carried the market sharply higher last week. Source: The Times of India; Financial Express

The BSE Sensex fell more than 200 points, or 0.3 per cent, to 80,784.96, while the NSE Nifty 50 slipped 69 points, or 0.3 per cent, to 24,917.85, falling back below the psychologically important 25,000 mark. Only ten of the fifty Nifty stocks were trading in the green. Source: Financial Express

Information technology stocks were the worst hit. HCL Technologies fell more than 1 per cent and was the biggest loser among the Sensex constituents, while Infosys and Tata Consultancy Services each declined by around 1 per cent. The Nifty IT index dropped 1.7 per cent, the steepest fall of any sectoral index in early trade. Tata Steel and Power Grid were also among the major laggards. Source: Financial Express; HDFC Sky; ETV Bharat

Banks provided the main offset. State Bank of India led the gainers, rising between 1.5 and 2.3 per cent during the morning session, while HDFC Bank climbed 1.3 per cent and ICICI Bank added 1.1 per cent. InterGlobe Aviation was also among the winners. Source: Financial Express; ETV Bharat

The pullback follows a remarkable run. The Nifty gained about 8.58 per cent last week, closing Friday with a surge of 493.75 points, or 2.01 per cent, to 25,030.35, while the Sensex jumped 1,718.01 points, or 2.17 per cent, to 81,028.02. It was the seventh consecutive winning session, a rally driven by record foreign buying of nearly 15,000 crore rupees on Thursday and a 0.6 per cent rise in the rupee. Source: TradingView; MarketSmith India

Investors remain cautious despite the gains. India VIX, the market's fear gauge, stood at 17.53 in early trade, down from 18.43 but still well above the 14.38 level recorded a week earlier. The broader market was less buoyant than the headline indices, with mid-cap and small-cap stocks underperforming and market breadth negative. Source: HDFC Sky; TradingView

The global backdrop was mixed. On Wall Street, the Nasdaq rose 1.09 per cent and the S&P 500 added 0.31 per cent on Friday, partly recovering from a 5.5 per cent Nasdaq slide the previous day amid concerns over artificial intelligence regulation and stretched technology valuations. Asian markets rebounded on Monday, led by Japan's Nikkei, up between 2.5 and 3.4 per cent, and South Korea's Kospi, up 1.8 per cent. Source: NDTV; The Times of India

Oil prices offered some relief. Brent crude traded at around 97 to 98 dollars a barrel, after recording a 17 per cent weekly fall, its steepest since the Covid pandemic, as United States President Donald Trump said fresh attacks on Iran were highly unlikely while negotiations continued. Foreign investors have bought more than 4.1 billion dollars of Indian equities so far in November, a flow that has supported the market's outlook. Source: The Times of India; HDFC Sky

Attention now turns to quarterly results, with Tata Steel, Voltas and Divi's Laboratories in focus after reporting second-quarter earnings. Traders will also watch the rupee, foreign fund flows and crude prices, which the Times of India said would shape the market's next move, along with the direction of the global technology selloff. The question for the week is whether the rally resumes or the profit-booking deepens into a broader consolidation. Source: Financial Express; The Times of India

This article was researched and drafted with AI assistance and verified against multiple independent sources.