Sensex, Nifty end lower over monthly Futures and Options expiry

Indian equity benchmarks closed lower Tuesday amid monthly expiry of Nifty futures and options contracts for November.

The Sensex declined 313.7 points (0.37%) to settle at 84,587.01, while the Nifty fell 74.7 points (0.29%) to 25,884.8.

Significant call activity was observed at the 26,000 and 26,200 strike levels for weekly Nifty options expiring December 2, with notable put additions at 26,000 and 25,500 levels.

Top Sensex decliners included Trent, Tata Motors PV, HCLTech, Infosys and Power Grid, while Bharat Electronics Ltd (BEL), State Bank of India (SBI), Tata Steel and Eternal were among key gainers.

Sectoral performance showed divergence. The Nifty Realty index led sectoral gains (+1.62%), followed by Nifty PSU Bank (+1.44%). Conversely, Nifty IT (-0.57%) and Nifty Media (-0.80%) underperformed.

Broader markets showed resilience, with the Nifty Midcap 100 rising 0.36% and Nifty Smallcap 100 adding 0.19%, indicating sustained interest in mid-sized and smaller stocks.

Volatility from derivatives expiry and profit-taking weighed on benchmark indices, while select sectors attracted fresh capital ahead of December trading. Investors remained cautious pending signals from the upcoming FOMC meeting and clarity on the India-US trade agreement.

The 26,000 level on Nifty witnessed technical resistance, though strong domestic fundamentals including robust H2 earnings forecasts limited downward movement. PSU banks and realty stocks extended gains, propelled by rising housing loan demand and improved corporate performance in the banking sector.

(With inputs from IANS)