The Nifty and Sensex had a strong opening on November 26 but experienced a downturn, ending a two-day winning streak.
The decline in auto and energy stocks caused the Sensex to fall by 147.14 points or 0.18 percent to 79,962.71, and the Nifty to fall by 39.40 points or 0.16 percent to 24,182.50.
Market breadth showed that 1,995 shares advanced, 1,290 shares declined, and 115 remained unchanged.
Market experts believe that the recent rally may not be sustainable due to earnings concerns. V K Vijaykumar, Chief Investment Strategist at Geojit Financial Services, stated that the positive sentiment from the Maharashtra election results and short covering effects are likely to be temporary. He also mentioned that foreign institutional investors (FIIs) purchased Rs 9,949 crore in cash markets, which is their first significant buying in 38 days. This buying was primarily driven by MSCI rebalancing favoring HDFC Bank.
Leading banks are expected to remain resilient due to consistent buying and reasonable valuations.