Indian Stock Market Declines as Nifty and Sensex Show Weakness

On November 21, 2024, Indian equity benchmark indices, BSE Sensex and Nifty50, experienced a decline as market activity remained subdued throughout the trading session. The Sensex fell by 446.59 points, or 0.58 percent, placing it at 77,131.79, while the Nifty was down by 171 points, or 0.73 percent, settling at 23,347.50.

Market analysts observed that the indices opened in the red and continued to slide as the day progressed. Ajit Mishra, SVP of Research at Religare, noted, «The Nifty’s movement reflects that bears are firmly in control, using every rebound as an opportunity to short. We maintain our sell on rise stance for the index until a decisive reversal is evident, while emphasizing a selective approach for stock-specific trades.»

The performance was mirrored across various sectors. The metal sector, in particular, was impacted negatively with stocks like Vedanta facing volatility, attributed to fluctuating metal prices and other macroeconomic factors. Vedanta has historically seen swings in its bond prices due to these challenges.

The Adani Group was among the most active stocks, with the company asserting its compliance with legal standards. They vowed to pursue all possible legal avenues in light of recent fluctuations. Market experts suggest that the reaction to these developments may only be temporary, with potential for recovery as further clarity on specific issues emerges.

Internationally, mixed results from US markets influenced the Asian markets. The Nasdaq fell amid geopolitical tensions involving Russia and Ukraine, as well as subdued corporate performances such as that of Nvidia, which posted a conservative revenue outlook.

Additionally, foreign portfolio investors (FPIs) registered net sales amounting to Rs 3,411 crore, whilst domestic institutional investors (DIIs) showed net purchases worth Rs 2,784 crore. The currency markets saw the US dollar maintain its strength, as investors awaited further policy guidance from the upcoming US administration and assessed potential Federal Reserve interest rate decisions.