November 18, 2024
New Delhi, India
Stock Market Today
The Indian stock market experienced a dip on Monday, with benchmark indices BSE Sensex and NSE Nifty50 closing in the red. The decline was driven by persistent selling pressure in IT stocks and concerns over foreign fund outflows, despite a slightly positive opening.
Key Highlights of the Trading Session
- Sensex and Nifty Performance:
- BSE Sensex fell by 241.30 points or 0.31%, settling at 77,339.01.
- NSE Nifty50 declined by 78.90 points or 0.34%, closing at 23,453.80.
- The Sensex traded within a range of 76,965.06 to 77,886.97, showing a sharp intraday swing.
- Nifty fluctuated between 23,350.40 and 23,606.80, reflecting volatile market sentiment.
- Sectoral Performance:
- Nifty IT emerged as the biggest loser, plunging 2.32%. Major IT stocks like Coforge, Persistent Systems, HCL Tech, Tech Mahindra, and LTTS dragged the index down.
- Other lagging sectors included Nifty Media, Pharma, CPSE, and Healthcare, which recorded losses up to 1.60%.
- On the positive side, Nifty FMCG, Metal, Banking, Realty, and Financial indices gained up to 1.90%.
- Top Losers and Gainers:
- Major Losers: Leading the decline were Tata Consultancy Services (TCS), Infosys, NTPC, HCL Technologies, and Axis Bank, with losses extending up to 3.11%.
- Top Gainers: Among the gainers were Hindalco, Tata Steel, Hindustan Unilever, Mahindra & Mahindra, and Nestle India, posting gains up to 3.79%.
- Market Volatility:
- The India VIX, a measure of market volatility, rose by 2.65% to end at 15.17 levels, indicating increased nervousness among investors.
Broader Market Overview
- The Nifty Smallcap100 index fell by 0.53%, while the Nifty Midcap100 ended the session flat, reflecting mixed sentiment in broader markets.
- Despite gains in some defensive sectors like FMCG, the broader market sentiment remained bearish due to weak global cues and sustained selling pressure in IT stocks.
Factors Affecting the Market
- Weak Global Cues: The Indian markets followed global trends, where concerns over slowing earnings growth and hawkish comments from the Federal Reserve Chair dampened sentiment.
- Foreign Fund Outflows: Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,849.87 crore on Monday. For the month of November so far, foreign investors have pulled out ₹22,420 crore from Indian equities, attributing it to high domestic valuations, rising U.S. Treasury yields, and increasing allocations to China.
- Ongoing Decline: The Sensex recorded its fourth consecutive session of losses, while Nifty marked its seventh straight day of decline, highlighting persistent selling pressure.
The Indian equity market continues to face challenges from foreign fund outflows and pressure on IT stocks. Investors remain cautious due to the Federal Reserve’s signal of a more gradual pace of interest rate cuts, impacting global market sentiment. In the upcoming sessions, market participants will closely monitor the movements of FIIs, global cues, and domestic earnings reports for further direction.
With the ongoing sell-off in IT stocks and broader concerns about foreign fund outflows, the market remains in a consolidation phase. Investors are advised to exercise caution and focus on sectors showing resilience, such as FMCG and metals, while keeping an eye on global market trends.
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