Last Updated on November 12, 2026 9:23 pm by INDIAN AWAAZ
Realty, media and PSU banks lead sectoral gains; retail inflation breaches RBI’s 6% upper tolerance limit
By Our Business Correspondent
Indian equity benchmarks ended marginally higher on Thursday, extending their gains to a third consecutive session as buying in select heavyweight stocks and strength in broader market segments helped the market overcome bouts of volatility and profit booking at higher levels.
The trading session remained uneven, with the Nifty 50 recovering from early weakness to climb to an intraday high of 25,384.80 before surrendering a substantial portion of its gains. Investors appeared cautious at elevated levels, with selling pressure emerging in several heavyweight sectors, including automobiles, fast-moving consumer goods (FMCG), pharmaceuticals and information technology.
The benchmark indices nevertheless managed to finish in positive territory, supported by gains in banking and select financial stocks. The broader market delivered a relatively stronger performance, indicating that investor participation extended beyond frontline shares.
The S&P BSE Sensex advanced 31.61 points, or 0.04 per cent, to close at 81,911.01. The NSE Nifty 50 gained 44.30 points, or 0.18 per cent, to settle at 25,299.35.
With Thursday’s advance, the Sensex and Nifty have gained 1.25 per cent and 1.21 per cent, respectively, over three consecutive trading sessions.
The Nifty opened at 25,213.50 and subsequently moved higher to touch an intraday peak of 25,384.80. However, profit booking at higher levels restricted further gains. During the second half, the index largely moved within a narrow band of 25,220-25,280 before closing above the 25,300 mark.
Broader markets outperform frontline indices
The broader market indices outperformed the benchmark gauges, reflecting relatively stronger buying interest in mid-cap and small-cap stocks.
The Nifty MidCap 150 index advanced 0.72 per cent, while the Nifty SmallCap 250 index rose 1.10 per cent. The performance suggested that investors continued to look beyond large-cap stocks despite uncertainty in global markets and concerns over domestic inflation.
Market breadth on the NSE remained positive. A total of 2,080 shares advanced, while 1,536 declined and 105 remained unchanged.
The India VIX, which measures the market’s expectation of near-term volatility, declined 5.38 per cent to 16.61. The fall indicated a moderation in immediate volatility expectations, although the market’s uneven movement suggested that investors remained selective in their positioning.
Among individual index constituents, Bajaj Finance was the biggest support, rising 3.36 per cent. State Bank of India gained 2.38 per cent, while ICICI Bank advanced 1.17 per cent.
At the sectoral level, realty stocks emerged as the leading gainers, followed by media and public sector banks. In contrast, automobile, FMCG, pharmaceutical and IT stocks ended lower.
The divergence between sectors highlighted the selective nature of buying, with investors favouring certain financial and property-related stocks while booking profits in other segments.
Retail inflation breaches RBI’s upper tolerance limit
Domestic economic developments remained an important factor for investors after India’s retail inflation accelerated to 6.09 per cent in October 2026, compared with 5.54 per cent in September.
The latest reading took consumer price inflation above the Reserve Bank of India’s upper tolerance threshold of 6 per cent for the first time under the current Consumer Price Index (CPI) series.
The acceleration was largely driven by food prices. Food inflation increased to 8.94 per cent in October from 7.74 per cent in the preceding month, reflecting higher prices of essential commodities, including onions, garlic and ginger.
The inflation data could complicate the monetary policy outlook, as the RBI has to balance price stability with the need to support economic growth. A sustained increase in food prices could also affect household purchasing power and consumer spending, particularly among lower- and middle-income households.
For financial markets, the latest inflation reading assumes significance because a prolonged breach of the central bank’s tolerance band could influence expectations regarding interest rates and liquidity conditions.
Higher inflation can also put pressure on bond yields and borrowing costs, potentially affecting interest-sensitive sectors such as banking, automobiles and real estate.
Rupee weakens; bond yields edge higher
Developments in the currency and debt markets reflected some caution during the session.
The Indian rupee weakened against the US dollar, with the partially convertible currency hovering around 94.0300, compared with its previous close of 93.7150.
The yield on India’s 10-year benchmark government security increased to 7.243 per cent from 7.224 per cent in the previous session, indicating a modest decline in bond prices.
In the commodities market, MCX gold futures for delivery on December 4, 2026, declined 0.95 per cent to Rs 1,38,345.
The US Dollar Index, which measures the greenback against a basket of major currencies, slipped 0.11 per cent to 102.81. Meanwhile, the yield on the US 10-year Treasury note declined 0.32 per cent to 4.988 per cent.
Brent crude futures for December 2026 delivery fell 71 cents, or 0.77 per cent, to $92.05 per barrel.
Crude prices came under pressure amid hopes of progress in diplomatic negotiations aimed at ending the Iran conflict and the Russia-Ukraine war. Any meaningful easing of geopolitical tensions could help reduce concerns over supply disruptions and provide some relief to oil-importing economies such as India.
However, elevated crude prices remain a potential source of concern for the domestic economy, given their implications for the import bill, inflation, the rupee and corporate input costs.
Global markets present a mixed picture
Global equity markets remained divided on Thursday, with European shares advancing while most Asian markets ended lower.
European equities drew support from relatively strong corporate earnings and the defensive composition of several major indices. This helped offset concerns surrounding technology stocks, particularly following renewed uncertainty involving Nvidia, one of the world’s most influential artificial intelligence and semiconductor companies.
Asian markets faced pressure as investors assessed developments surrounding Nvidia and continued to evaluate the implications of higher US interest rates.
Technology stocks remained in focus following Wednesday’s recovery in US semiconductor shares. However, reports concerning the future of Nvidia chief executive Jensen Huang weighed on sentiment. The company’s shares reportedly fell more than 8 per cent in after-hours trading following claims that its board was considering his future amid allegations relating to his personal associations. These allegations have not been independently established.
The uncertainty surrounding a major AI industry player added to concerns about the sustainability of the technology-led rally and the high valuations attached to companies associated with artificial intelligence.
Japan’s latest wholesale inflation figures also attracted attention. The country’s Corporate Goods Price Index increased 7.1 per cent year-on-year in October, accelerating from 6.8 per cent in September and exceeding market expectations of 6.5 per cent.
Higher fuel, chemical and semiconductor prices contributed to the increase. The data strengthened expectations that the Bank of Japan could consider another interest rate increase, adding to the uncertainty surrounding monetary policy in Asia.
Wall Street rallies as semiconductor shares recover
US equity markets staged a strong recovery on Wednesday, November 11, as renewed buying in artificial intelligence and semiconductor stocks helped investors look past concerns about higher interest rates.
The Dow Jones Industrial Average rose 254.60 points, or 0.49 per cent, to close at 52,486.49. The S&P 500 advanced 98.45 points, or 1.31 per cent, to 7,619.38, while the Nasdaq Composite climbed 400.31 points, or 1.60 per cent, to finish at 25,466.19.
Technology shares led the rally. The Philadelphia Semiconductor Index surged 5.7 per cent, with all its constituent stocks ending higher. The S&P 500 technology sector gained 2.7 per cent.
The CBOE Volatility Index (VIX), commonly known as Wall Street’s fear gauge, declined for a fourth consecutive session to 17.49, suggesting easing near-term concerns about market volatility.
Among individual stocks, AI infrastructure company CoreWeave surged 24.7 per cent after reporting strong third-quarter financial results and raising its full-year outlook.
The company reported revenue of $3.66 billion, representing a 168 per cent year-on-year increase. Adjusted EBITDA rose to $2.26 billion from $838 million in the corresponding period a year earlier.
CoreWeave raised its FY26 revenue guidance to $13 billion-$13.3 billion from its previous forecast. It also increased its adjusted operating income guidance to $1.275 billion-$1.375 billion.
The company indicated that it expected to achieve adjusted profitability in the first half of 2028.
Other AI-linked companies also attracted buying interest. Nebius Group advanced 15.4 per cent, while Applied Digital gained 7.4 per cent.
The gains reflected renewed investor interest in companies providing computing infrastructure and data-centre capacity for AI applications, despite continuing concerns over substantial capital expenditure requirements, financing costs and the long-term profitability of the sector.
Meanwhile, the proposed public listing of artificial intelligence company Anthropic remained in focus. The company is reportedly targeting a valuation of up to $1.4 trillion and could seek to raise as much as $64.4 billion through a share offering. The proposed listing, if pursued on these terms, would represent a significant test of investor appetite for large AI-related public offerings.
Stocks in focus: Godrej Industries, Cupid and Hindustan Copper gain
Godrej Industries surged 11.88 per cent after Singapore-based investment company Temasek Holdings, through its affiliate Jongsong Investments, agreed to invest Rs 2,500 crore in Godrej Capital.
The transaction values the financial services business at up to Rs 28,000 crore, with the Godrej Group expected to retain approximately 80 per cent ownership.
Established in 2020, Godrej Capital provides lending solutions to businesses and individuals across more than 100 cities. Its assets under management stood at Rs 35,000 crore as of October 31, 2026.
Cupid advanced 8.70 per cent after touching a record high of Rs 389 during the initial trading session. The company reported a 133 per cent year-on-year increase in consolidated net profit to Rs 56.22 crore for the second quarter of FY27, compared with Rs 24.13 crore in the corresponding quarter last year.
Sequentially, net profit increased 27.4 per cent from Rs 44.15 crore in the first quarter of FY27.
ICICI Prudential Life Insurance gained 3.77 per cent after reporting a 27 per cent year-on-year increase in new business premium to Rs 14,258 crore during the first seven months of FY27.
For October 2026, new business premium increased 37.5 per cent to Rs 2,437 crore. Annualised premium equivalent (APE) rose 8.6 per cent to Rs 797 crore, although retail APE declined 3.2 per cent to Rs 582 crore during the month.
Hindustan Copper advanced 2.25 per cent after reporting an 181.91 per cent year-on-year increase in consolidated adjusted net profit to Rs 518.13 crore in Q2 FY27.
Revenue from operations increased 63.65 per cent to Rs 1,175.24 crore from Rs 718.13 crore in the corresponding quarter of the previous financial year. On a sequential basis, adjusted net profit rose 47.04 per cent, while revenue increased 25.49 per cent.
Nava surged 5.41 per cent following a strong quarterly performance. Its consolidated net profit increased 143.59 per cent year-on-year to Rs 315.42 crore in Q2 FY27 from Rs 129.49 crore a year earlier. Revenue from operations grew 29.94 per cent to Rs 1,252.31 crore.
Mid- and small-cap stocks see strong corporate earnings response
Roto Pumps was among the notable gainers, jumping 14.46 per cent after reporting a 245.30 per cent year-on-year increase in consolidated net profit to Rs 20.58 crore in Q2 FY27.
Revenue from operations rose 54.65 per cent to Rs 100.15 crore from Rs 64.76 crore in the corresponding quarter last year. Sequentially, net profit increased 122.49 per cent, while revenue advanced 32.47 per cent.
Frontier Springs gained 4.63 per cent after its standalone net profit increased 35.77 per cent year-on-year to Rs 21.33 crore. Revenue from operations rose 20.53 per cent to Rs 99.73 crore.
On a quarter-on-quarter basis, net profit increased 77.60 per cent, while revenue grew 27.11 per cent.
Kovai Medical Center and Hospital climbed 6.53 per cent following a 30.77 per cent year-on-year rise in standalone net profit to Rs 76.97 crore for Q2 FY27.
Revenue from operations increased 20.57 per cent to Rs 472.63 crore. Sequentially, net profit rose 11.41 per cent and revenue advanced 9.58 per cent.
DCX Systems jumped 10.81 per cent after substantially narrowing its consolidated net loss. The company reported a net loss of Rs 0.26 crore in Q2 FY27, compared with a loss of Rs 9.04 crore in the year-ago quarter.
However, revenue from operations declined 27.31 per cent to Rs 140.17 crore from Rs 192.85 crore, indicating that the improvement in profitability came despite weaker revenue.
Triveni Turbine was among the notable laggards, declining 1.37 per cent after reporting a 41.6 per cent year-on-year fall in consolidated net profit to Rs 53.3 crore in Q2 FY27 from Rs 91.2 crore in the corresponding quarter last year.
Revenue also declined 3 per cent to Rs 491 crore from Rs 506 crore, reflecting a weaker quarterly performance.
Market outlook
The domestic market’s third consecutive session of gains indicates that buying interest remains intact, particularly in mid- and small-cap stocks and selected financial and realty counters. However, the relatively modest advances in the Sensex and Nifty, despite positive market breadth, point to continued selectivity among investors.
Going forward, domestic inflation, movements in crude oil prices, the rupee’s performance and foreign institutional investment flows are likely to remain important factors influencing sentiment.
Developments in global technology stocks and expectations surrounding interest rates in the United States and Japan could also affect risk appetite.
While easing crude prices and improving global technology sentiment may provide support, the latest rise in retail inflation above the RBI’s tolerance ceiling presents a significant domestic concern. Investors are therefore likely to remain attentive to incoming economic data, corporate earnings and global developments.
Disclaimer: This report is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should consult qualified financial advisers and conduct their own research before making investment decisions.