Indian Equities Steady on Foreign Inflows; Inflation Tops RBI's Upper Limit

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

November 12, 2026 at 12:44 PM IST

Benchmark equity indices ended marginally higher on Thursday, with the Nifty50 rising 0.18% to 25,299.35 and theSensex gaining 31.61 points, or 0.04%, to 81,911.01. Both indices have advanced about 10% so far in November, outperforming emerging market peers after lagging for two years. Sustained foreign fund inflows, lower crude oil prices, and easing concerns over global artificial intelligence trade supported the rally.

Overseas investors have bought $6.43 billion of Indian shares so far this month, their biggest monthly purchase in more than two years, helping India regain its position as the world's fifth-largest stock market by capitalisation, overtaking Taiwan. Global brokerages also turned more positive, with HSBC upgrading India to overweight and Citi and Bernstein raising their Nifty targets.

The session was mixed, with 11 of the 16 major sectors ending lower. Realty stocks led gains, rising 4%, followed by PSU banks, media and banks. Financial stocks gained 1.4%, while auto shares declined the most. The Nifty MidCap 100 and SmallCap 100 rose 0.85% and 1.12%, respectively. Mahindra & Mahindra, Nestle India and Power Grid Corporation were the biggest Nifty 50 losers.

India's retail inflation accelerated to 6.09% in October from 5.54% in September, breaching the Reserve Bank of India's 6% upper tolerance limit for the first time since October 2024. Food inflation rose to 8.94% from 7.74%, indicating that higher food prices drove much of the increase. The consumer price index rose 0.5% from the previous month, while the food index increased 0.9%.

The latest reading adds to the inflation challenge for the RBI, which raised its FY27 inflation forecast to 5.2% from 5.0% in its October policy review, citing a deficient monsoon, El Niño risks, elevated global energy prices and widening food price pressures.

The rupee fell 0.4% to close at 94.0425 per US dollar, reversing early gains as oil prices rose and domestic equities gave up advances. The currency had strengthened to 93.62 in early trade, supported by increased foreign portfolio inflows.

Indian government bond yields rose on Thursday, even as the market pared some losses as traders covered short positions as the October retail inflation was broadly in line with expectations. The benchmark 6.94%, 2036 bond yield rose to 7.2467% from Wednesday's close of 7.2139%, with an intraday rise in overseas yields adding to the pressure.

Top Movers of the Day

HDFC Life Insurance advanced 4.23% to close at ₹597.80, emerging as the top gainer on the Nifty 50. The stock witnessed strong institutional buying following industry reports indicating a significant spike in first-year premium collections and robust annualised premium equivalent (APE) growth across private insurers.

Shriram Finance shares climbed 3.58% to settle at ₹1,003.80 on the back of heavy trading volumes. The non-banking financial lender continued to attract investor interest following its recent strong quarterly performance, where it reported a 59% jump in net profit and healthy asset under management (AUM) growth.

Bajaj Finance gained 3.36% to end at ₹1,115, acting as a major driver for the broader market indices. The company opened its qualified institutional placement to institutional investors worth ₹117 billion with a floor price of ₹992.25.

SBI Life Insurance rose 2.97% to close at ₹1,819.50, tracking a broad-based rally in the life insurance sector. Market participants reacted positively to the company's strong rebound in group business and sustained market share leadership among private insurers.

SBI climbed 2.38% to settle at ₹1,086.50, providing crucial support to the benchmark indices. The stock found significant traction as CLSA and Goldman Sachs brokerages maintained a bullish rating on the largest public sector bank.

Nestle India dropped 2.10% to close at ₹1,260.90, leading the decline among large-cap stocks. The counter faced sustained selling pressure amid lingering concerns that elevated food inflation could compress near-term operating margins.

Mahindra & Mahindra fell 1.90% to settle lower at ₹3,399 as the Nifty Auto index experienced a broader pullback. The automaker was down by localised profit-booking and cautious market sentiment regarding the sustainability of its recent peak festive season sales volume growth.

Power Grid Corporation of India slipped 1.63% to close at ₹259.45, marking a noticeable retreat in the infrastructure space. Investors opted to unwind their long positions in defensive utility plays to chase higher-beta opportunities in the rallying financial sector.

Hindustan Unilever declined 2.39% to end at ₹1,974, tracking the overarching weakness in the FMCG sector. Sluggish rural demand expectations and rising raw material costs prompted institutional investors to trim their holdings and move capital elsewhere.

Trent dropped 1.32% to close at ₹3,210, remaining under pressure from recent quarterly performance updates. The stock continued to digest a valuation de-rating as market participants weighed concerns over slower new store additions and declining store productivity against its premium pricing.

Futures & Options
The Nifty November futures contract closed at 25,314, a premium of 14.65 points over the Nifty 50's cash market close of 25,299.35. The benchmark index rose 44.30 points, or 0.18%, during the session. India VIX, a gauge of expected near-term volatility, fell 5.38% to 16.61.

HDFC Bank, State Bank of India and ICICI Bank were the most-traded individual stock futures contracts on the NSE. November 2026 F&O contracts will expire on November 23.

Bonds
The benchmark 6.94%, 2036 government bond yield ended higher on Thursday, although the market pared some losses as traders covered short positions after October retail inflation came broadly in line with expectations. The benchmark 6.94%, 2036 bond yield rose to 7.2467% from Wednesday's close of 7.2139%. A nearly 1% intraday decline in Brent crude prices to around $92 a barrel also provided some support.

India's retail inflation accelerated to 6.09% in October from 5.54% in September, breaching the Reserve Bank of India's 6% upper tolerance limit for the first time since October 2024. Food inflation rose to 8.94% from 7.74%. However, the headline reading was broadly in line with market expectations and did little to alter expectations for the Monetary Policy Committee's December policy review, keeping bets on a rate hike alive.

Forex
The Indian rupee fell 0.4% to close at 94.0425 per US dollar on Thursday, reversing early gains as oil prices rose and domestic equities gave up intraday advances. The currency had strengthened to 93.62 in early trade, its strongest level since April, supported by increased foreign portfolio inflows.

The rupee came under pressure as oil prices moved higher and strong dollar bids from a state-run lender emerged in afternoon trade. Other public sector banks were also seen offering dollars near the 94 mark. Traders awaited India's October consumer inflation data, due at 4 pm IST, amid concerns that elevated oil prices could weigh on growth and fuel inflation.

Crypto
The cryptocurrency market traded lower on Thursday, with total market capitalisation falling to around $2.44 trillion as cautious investor sentiment weighed on digital assets. Bitcoin hovered near $73,400, while Ethereum traded around $2045-$2054 testing psychological support near $2,000.

Higher-than-expected US inflation and a stronger dollar dampened expectation of near-term Federal Reserve rate cuts, while continued net outflows from US spot crypto exchange-traded funds added to the pressure. A tech-led decline in equity futures also weighed on sentiment.

US Stock Futures
US stock futures traded mostly lower on Thursday as reports concerning Nvidia's leadership and renewed uncertainty over semiconductor exports to China weighed on technology shares. At 0809 GMT, Nasdaq 100 futures fell 0.9%, or 240 points, while S&P 500 futures declined 0.4%, or 32 points. Dow Jones futures were broadly unchanged.

The declines followed gains on Wall Street on Wednesday, when the Nasdaq Composite rose 1.6%, supported by renewed interest in artificial intelligence companies, including CoreWeave, Anthropic and OpenAI. Investors also assessed higher-than-expected US inflation data, which had raised expectations of a larger Federal Reserve interest rate increase in December.

US Treasury Notes
US Treasury yields remained near multi-month highs on Thursday, with the 10-year yield hovering around 5.00%, as expectations of further Federal Reserve rate increases supported the dollar. The two-year yield held near 4.76%, while the five-year yield traded around 4.83%, keeping the curve under upward pressure. Trading resumed after the Veterans Day holiday.

Expectations of a 25-basis-point Fed rate hike in December strengthened following better-than-expected employment data, hawkish comments from policymakers and higher-than-expected October inflation. Soft demand at recent government debt auctions and persistent inflation concerns also weighed on Treasury prices, keeping borrowing costs elevated.

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Indian Equities Steady on Foreign Inflows; Inflation Tops RBI's Upper Limit