Nifty and Sensex Close Flat in Diwali Muhurat Session After a Seven-Day Rally

Indian benchmark indices ended the Diwali week in a holding pattern. The special Muhurat trading session on Sunday, 8 November, a one-hour window that traditionally opens the Hindu new financial year, closed almost flat. The Sensex finished around 80,999 and the Nifty 50 around 24,986, down roughly 0.04% and 0.2% respectively. The pause came after a seven-day winning streak that had lifted the Nifty back above 25,000 on 6 November for the first time since late February.

What happened

The rally was powered by foreign investors, who bought Indian equities aggressively as global technology stocks sold off. Reports put net foreign inflows for the week at roughly ₹46,000 crore, a sharp reversal from heavy selling in October. Lower crude oil prices also helped. Brent had fallen sharply over the week, easing worries about India's import bill and inflation. On the Friday session, the Sensex had jumped about 1,700 points, with banks, autos and PSU lenders leading the advance.

Sunday's session was symbolic rather than directional. Liquidity is thin during Muhurat trading, and traders often use the slot to buy shares they plan to hold for the year. A flat close after a long run usually signals that buyers are taking a breather rather than that the trend has broken.

Why it matters for traders

• Foreign flows are the main driver. Strong FII buying has been the reason the market has resisted the global tech sell-off. If that flow stalls, the index has less support.
• Oil is still a swing factor. Crude's fall helped India's inflation and rupee outlook. A rebound in oil would test the rally quickly.
• Rate expectations are back in play. The repo rate sits at 5.50% after the October hike, and traders are now weighing whether the next inflation print could revive talk of another tightening.
• Sector rotation is visible. Banks and autos led the move, while IT stocks lagged. Traders watching sector breadth should note the divergence.

What to watch

Trading resumes on Monday, 9 November. The next big event is India's October consumer price data, due on 12 November. A hot print would likely push rate-hike bets higher and could pull banks and rate-sensitive stocks lower. Watch whether the Nifty can hold the 25,000 area on closing basis; a sustained close below it would suggest the rally has lost momentum.

Educational content, not investment advice. Practise sector rotation and index-level risk management risk-free in the Trading Titans paper trading app.