India stock benchmarks flat on consolidation after October rally

India’s equity benchmarks traded flat on Monday with analysts expecting consolidation after strong gains last month, while stock-specific reactions to quarterly earnings supported broader market activity.

The Nifty 50 rose 0.1% to 25,747.45, while the BSE Sensexadded 0.02% to 83,956.75 as of 9:56 a.m. IST.

Fourteen of the 16 major sectors logged gains.

The small-caps and mid-caps rose 0.8% and 0.4%, respectively.

The 50-stock index gained 4.5% in October - its best performance since March.

On the day, state-owned lenders rose 1.5% to top sectoral gains while private banks and IT fell about 0.4% each.

“While PSU banks climb on reports of a potential hike in foreign investment limits, investors are taking some chips off the table after the sustained rally,” said Vinod Nair, head of research at Geojit Investments.

There will be further consolidation near current levels as investors await clarity on the global trade front, said two analysts.

Among individual stocks, non-bank lender Shriram Finance rose 5.6% after posting a rise in quarterly profit. It was the top Nifty 50 gainer by percentage.

Bank of Baroda gained 3.7% after reporting a larger-than-expected profit in the September quarter. Multiple brokerages expect re-rating of the state-owned lender to continue and see valuations remaining attractive.

Defence company Zen Technologies jumped 4.4% after securing two orders worth 2.89 billion rupees from the Ministry of Defence for the upgradation of anti-drone systems.

Pharmacy retailer Medplus Health climbed 9% after reporting a rise in September quarter profit.

Home services provider Urban Company fell 2.7% after reporting a net loss in the second quarter compared to a net profit in the year-ago period.

Soda ash maker GHCL and rubber chemicals maker Nocil fell about 5.2% after posting a year-on-year fall in the September quarter profits.