Profit booking drags market lower; media shares rally for 2nd day

The key equity benchmarks pared their initial gains and traded marginally lower in early-afternoon deals, as investors resorted to profit booking at elevated levels following the recent rally. Cautious sentiment also prevailed amid concerns over the sustainability of massive investments in artificial intelligence (AI)-related companies, with investors questioning whether these investments would generate adequate returns. The Nifty hovered around the 23,800 mark.

Media shares extend their gains for second consecutive trading session.

At 12:25 IST, the barometer index, the S&P BSE Sensex declined 43.38 points or 0.03% to 76,896.75. The Nifty 50 index shed 0.50 points or 0.01% to 23,809.58.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index gained 0.82% and the BSE 250 SmallCap Index added 1.10%.

The market breadth was strong. On the BSE, 2,502 shares rose and 933 shares fell. A total of 101 shares were unchanged.

Economy:

India's HSBC Services PMI was revised lower to 55.8 in October 2026 from the flash estimate of 56.2 but remained above September's reading of 55.2, marking the fastest expansion since June. Growth was supported by stronger output and sales, which reached four-month highs. However, export growth and employment creation moderated. Input cost inflation eased to its lowest level in over six years, while output price inflation slowed to its weakest pace since June. Business confidence remained positive but weakened from the previous month.

India's HSBC Composite PMI eased to 56.2 in October 2026 from the flash estimate of 56.7 but remained above September's reading of 55.9, marking the fastest expansion in private-sector activity since June. Growth was driven by stronger services activity, which offset slower manufacturing output. New orders rose at the fastest pace since June, while employment growth and business confidence moderated. Input cost inflation eased to an 11-month low, while output price inflation slowed to its weakest pace since February 2022.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.25% to 15.76. The Nifty November 2026 futures were trading at 23,775.60 at a premium of 33.98 points as compared with the spot at 23,809.58

The Nifty option chain for the 23 November 2026 expiry showed a maximum call OI of 57.7 lakh contracts at the 23,500 strike price. A maximum put OI of 76.4 lakh contracts was seen at the 23,000 strike price.

Buzzing Index:

The Nifty Media index jumped 1.79% to 1,655.95. The index jumped 2.29% in the two consecutive trading sessions.

Prime Focus (up 3.26%), Saregama India (up 2.63%), Network 18 Media & Investments (up 2.52%), D B Corp (up 1.47%), Sun TV Network (up 1.36%), Zee Entertainment Enterprises (up 1.26%), PVR Inox (up 0.95%) surged.

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