Indian stock markets began the new Samvat year on a muted note on Sunday, as the Sensex and the Nifty gave up strong early gains to end the special Diwali Muhurat trading session marginally lower, snapping a seven-day winning streak.

The 30-share BSE Sensex slipped 28.62 points, or 0.04 per cent, to settle at 80,999.40, while the 50-share NSE Nifty fell 43.95 points, or 0.18 per cent, to close at 24,986.40, slipping below the 25,000 mark. If the exchange figures hold, it would be the first time the special Diwali session has ended in the red since 2017.

A strong start that faded

The session had opened on a festive high. The Sensex began at 81,299.34, up 271 points from Friday's close, and climbed as high as 81,442.11 in early trading, while the Nifty opened at 25,070.45 and moved above 25,100. But profit-taking set in as the one-hour session wore on, and both benchmarks drifted lower into the close.

The special session, held from 2:20 pm to 3:30 pm after a pre-open from 2:05 pm, marks the start of Samvat 2083, the new Hindu financial year, and is held each year to coincide with Diwali and Lakshmi Pujan. Traders place token trades during the auspicious hour, believing that buying then brings prosperity for the year ahead.

The subdued finish followed a sharp rally last week. On Friday, the Sensex had surged 2.17 per cent to 81,028.02 and the Nifty had advanced 2.01 per cent to 25,030.35, extending their winning run to seven sessions.

Broader markets hold up

While the benchmarks slipped, the broader market fared better. The Nifty Midcap 100 rose 0.13 per cent and the Nifty Smallcap 100 gained 1 per cent, while the Nifty Microcap 250 ended 1.46 per cent higher. Within the Nifty 50, 17 stocks ended in the green and 32 closed lower.

Sun Pharma was the top gainer among the blue chips, rising 2.96 per cent, followed by Tata Steel, up 2.09 per cent, ONGC, up 1.32 per cent, and Tata Motors Passenger Vehicles, up 1.13 per cent. SBI Life Insurance, InterGlobe Aviation and Bharti Airtel were among the biggest losers, each falling more than 1 per cent.

The session also came against a brighter backdrop for foreign flows. Foreign portfolio investors have put in Rs 38,971 crore into Indian equities since the start of November, reversing a two-month selling streak, according to depository data, as global investors rotate away from technology and artificial intelligence stocks in developed markets.

Regular trading resumes on Monday, November 9. The exchanges will remain closed on Tuesday, November 10, for Balipratipada.