Indian shares edge lower as market consolidates after last week's surge

Indian shares slipped on Monday as the market consolidated following last week’s rally driven by falling crude prices and optimism over foreign investments. The Nifty 50 and Sensex declined 0.2% each to 24,931.2 and 80,837.24, respectively, at 9:35 a.m. IST on Monday. The indexes had surged roughly 10.5% over seven sessions leading up to Friday, the longest winning streak of the year, backed by robust foreign inflows, decreasing oil prices, and the unwinding of a global trade dispute.

Foreign investors have purchased Indian shares worth over $4.1 billion in November, marking their largest monthly inflows since September 2024.

Market analysts suggest that the new week will present a critical test of market momentum, with investors contemplating the potential for additional gains against the possibility of near-term profit-taking. Among the 16 major sectors, ten experienced declines, while the small and mid-cap markets contracted by 0.1% and 0.3%, respectively.

Brent crude futures remained near $98 per barrel, following US President Donald Trump’s assertion that he is highly unlikely to authorize further strikes on Iran while negotiations to resolve the conflict continue.

Asian markets experienced a volatile week, with tech-heavy markets in Asia among the steepest declines in years due to concerns about demand for computer chips. Divi’s Laboratories, a pharmaceutical company, rose 4.6%, extending a 7.5% jump during a special Diwali trading session on Sunday, following the firm’s announcement of a 64% year-on-year increase in quarterly profits.

This performance bolstered the pharmaceutical sector index by 1.6%. However, technology stocks suffered a 1.3% drop, while heavyweights in the financial sector gained 0.5%.