Sensex & Nifty fall in Muhurat trade for first time since 2017

Indian equities closed slightly lower in Muhurat trading, marking the first decline since 2017. The Sensex fell 28.62 points, or 0.04%, to 80,999.40, while the Nifty ended at 24,986.40, down 43.95 points, or 0.18%. Both indices last fell in Muhurat trading in October 2017, where they dropped 0.6% each. Muhurat trading is a symbolic one-hour session where retail traders participate, and making money is seen as a good omen for the year ahead.

Despite the decline, market sentiment has recently improved. The Nifty 50 gained over 8% last week, its biggest weekly rise since February 2021. Foreign investors have been buying domestic shares, with net purchases of $3.6 billion in November, reducing their net withdrawals for the year to $26.8 billion. The broader market outperformed the benchmarks, with the BSE 150 MidCap index up 0.4% and the BSE 250 SmallCap index gaining 1.33%.

Positive market breadth was observed, with 3,253 rising stocks against 947 declining ones on the BSE. Sectoral indices also showed mixed results, with Nifty Pharma up 1.7%, Nifty Metal and Nifty Cement rising 0.4% each, while Nifty Realty fell 0.7%, Nifty Bank and Nifty IT declined 0.4% each, and Nifty Consumer Durables dropping 0.3%.

Analysts predict Samvat 2083 to be relatively better due to easing geopolitical tensions and lower crude oil prices, though volatility is expected to persist until there is more clarity on the global political and policy environment.