MUMBAI: India’s equity benchmarks were little changed 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 0.16 percent to 25,763.35, while the BSE Sensex added 0.05 percent to 83,978.49.
Thirteen of the 16 major sectors logged gains. The small-caps and mid-caps rose 0.7 percent and 0.8 percent, respectively.
The 50-stock index gained 4.5 percent in October - its best performance since March.
“We expect November to be a slow and steady consolidation month for the markets. While earnings have not disappointed, the expectation was low,” said Dharmesh Kant, head of equity research at Cholamandalam Securities.
“Investors will watch whether the strong consumption trend seen during festival season last month sustains.”
Two other analysts also said there will be further consolidation near current levels until investors get clarity on the global trade front. State-owned lenders rose 1.9 percent, leading sectoral gains and extending last week’s 4.7 percent rally, amid reports of a possible hike in foreign investment. Bank of Baroda surged 4.6 percent after posting a stronger-than-expected quarterly profit. Shriram Finance jumped 6.4 percent to a record high on solid earnings and reports of MUFG’s interest in buying a stake.
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