The Indian stock market experienced a sharp sell-off today, reversing the gains of the previous session. Major indices closed significantly lower, weighed down by heavy losses in IT and financial sectors. In contrast, small-cap stocks showed resilience, with the BSE Smallcap index ending in the green.
Today’s market witnessed a significant fall, driven by a mix of global and domestic factors. One of the primary reasons for the downturn was the ongoing geopolitical tensions, particularly the developments in the Russia-Ukraine war. Ukraine achieved a major victory, with American missiles reportedly destroying Russia’s S-400 air defense systems. Russian President Vladimir Putin cited this as a key factor impacting market sentiment, as investors became concerned about the global implications of the conflict.
In addition to geopolitical concerns, the IT sector, which saw a sharp decline today, may be grappling with the uncertainty surrounding interest rate decisions. There is growing speculation that the anticipated rate cuts might not materialize as expected, which could be weighing on the tech stocks. However, it’s not easy to pinpoint the exact reason for the IT sector’s downfall today. Factors like inflationary data, including the CPI and PCE, along with job reports, also need to be carefully monitored, as they can provide further clues regarding the economic outlook.
Yesterday, the U.S. GDP growth data for Q3 came in at 2.8%, meeting expectations. Consumption-related data was also above expectations, indicating that the U.S. economy remains resilient. However, the increasing inflation could pose challenges, as it raises concerns about the economy’s ability to sustain its growth momentum. Fed Chairman Jerome Powell remarked that the inflation uptick is a base effect, implying it could be temporary, yet markets must still react to such signals.
The ongoing uncertainty surrounding interest rates in the U.S., particularly after Trump’s decisions regarding inflation, has increased market fears. These global issues have contributed to today’s market fall, but they also present an opportunity for Indian markets. While major indices like Nifty, Nifty Bank, and large-cap stocks faced losses, mid and small-cap stocks showed resilience and actually gained today.
It is essential to closely monitor the intensity of FII activities as they play a significant role in shaping market trends. No one had anticipated such a sharp fall today, making it a reminder of how unpredictable the global market conditions can be. However, in the face of such volatility, investors need to stay cautious and track both global and domestic indicators closely to make informed decisions.
Overview of Contents
Key Indices Performance
- NIFTY 50: Closed at 23,914.15, down 360.75 points (-1.49%).
- SENSEX: Ended at 79,043.74, shedding 1,190.34 points (-1.48%).
- NIFTY BANK: Fell by 394.95 points (-0.76%) to settle at 51,906.85.
- NIFTY IT: Experienced the steepest drop, losing 1,049.95 points (-2.39%), closing at 42,968.75.
- BSE SMALLCAP: Defied the trend, rising 221.65 points (+0.41%) to end at 54,782.58.
Comparison with Yesterday’s Performance
The markets had shown strength yesterday, with major indices registering gains and Adani stocks leading the rally. However, today’s session painted a contrasting picture, as profit booking and weak global cues led to a broad-based sell-off.
- NIFTY 50 and SENSEX: Both indices reversed gains from yesterday, falling sharply by 1.49% and 1.48%, respectively.
- NIFTY IT: After marginal losses yesterday (-0.15%), the index plummeted 2.39% today, reflecting weakness in the IT sector.
- BSE SMALLCAP: Continued its upward trajectory, gaining 0.41%, building on yesterday’s strong performance (+1.18%).
Top Gainers
- Adani Enterprises: Rose 1.64%, closing at ₹2,437.10, continuing its upward momentum driven by improved investor sentiment.
- Shriram Finance: Ended at ₹3,043.70, up 0.82%, supported by steady demand.
- SBI: Gained 0.57%, closing at ₹838.85, amid expectations of robust quarterly performance.
- Cipla: Closed slightly higher at ₹1,492.75 (+0.11%).
Top Losers
- SBI Life Insurance: Dropped 5.10% to ₹1,428.60, amid selling pressure in the insurance sector.
- M&M: Fell 3.53%, closing at ₹2,898.70, after a disappointing earnings outlook.
- Infosys: Declined 3.53% to ₹1,856.65, leading losses in the IT sector.
- HDFC Life: Ended at ₹657.70, down 3.36%, due to concerns over profitability.
- Bajaj Finance: Dropped 2.92%, closing at ₹6,509.40.
52-Week High Stock Performance
HDFC Bank: Hit a 52-week high of ₹1,793.15, but ended lower by 1.06%, reflecting profit booking.
Market Sentiment
Today’s downturn highlights increased caution among investors, driven by weak global markets and concerns over the performance of heavyweight sectors like IT and financials. Small-cap stocks, however, continue to show strength, indicating selective buying interest.
FII and DII Data for 28th Nov 2024
On 28th Nov 2024, Foreign Institutional Investors (FIIs) continued their selling spree, marking a significant outflow of ₹11,756.25 crores. In contrast, Domestic Institutional Investors (DIIs) showed strong support by making net purchases worth ₹8,718.30 crores, helping to mitigate some of the downward pressure in the market. This divergence in investment flows indicates the ongoing caution from foreign investors, while domestic investors are still actively supporting the market.
Here’s the detailed FII and DII data for today:
| Category | Date | Buy Value (₹ Crores) | Sell Value (₹ Crores) | Net Value (₹ Crores) |
|---|---|---|---|---|
| DII | 28-Nov-2024 | 17,685.35 | 8,967.05 | 8,718.30 |
| FII/FPI | 28-Nov-2024 | 10,796.17 | 22,552.42 | -11,756.25 |
Yesterday (27th Nov), FIIs turned net buyers after 36 consecutive days of selling, with inflows of ₹9,947.55 crore. This shift in sentiment helped lift market indices, but the selling pressure returned today as FIIs turned net sellers again, pulling back their gains.
Technical s View
From a technical standpoint, the Nifty 50 has a crucial support level around 23,750. As long as the index holds above this level, we don’t anticipate further significant declines in the near term. In fact, any movement above 23,750 could signal a positive outlook for the market. This support level has been tested multiple times, and as per my analysis, as long as Nifty 50 stays above 23,750, the market could continue to show strength in the short term. If the index remains resilient and recovers from here, it could pave the way for potential upward momentum in the coming days. However, a close below 23,750 would indicate a shift in market sentiment, suggesting the need for a more cautious approach.
![Today Market Technical Analysis [28th Nov 2024]](https://equitymarketinsights.com/wp-content/uploads/2024/11/technical-analysis-28th-nov-2024.png)
Conclusion
The market’s sharp decline today contrasts with yesterday’s optimism, underscoring the ongoing volatility. While small-cap indices remain robust, investors are advised to exercise caution, especially in sectors facing headwinds. Global cues and upcoming economic data will play a crucial role in shaping market direction in the coming sessions.