In a challenging start to Friday’s trading, Indian stock markets saw a notable dip as investors responded to ongoing global uncertainties and a continued outflow of foreign institutional investor (FII) funds. The Sensex fell by 377.73 points to 79,164.55, while the Nifty dropped 121.30 points to 24,078.05. The Nifty 50 reflected broad-based weakness, with only eight companies gaining while forty-two were in decline.
The market remains on edge amid various global factors, including the aftermath of the U.S. presidential election, expectations for further economic stimulus from China, and rising geopolitical tensions in the Middle East. In the Nifty 50, Infosys, Apollo Hospitals, Wipro, Tech Mahindra, and Hindalco were among the few gainers, while BPCL, Reliance, Coal India, Tata Motors, and Maruti led the losses.
Ajay Bagga, a banking and market expert, attributed the market’s downturn to both global and domestic factors. “The U.S. election is over, the Fed rate cut has taken place, and China’s NPC session concludes today with anticipated stimulus measures. However, geopolitical risks are heightening, with reports of Iran possibly preparing for strikes on Israel, while the U.S. has deployed F-15 fighters to the Middle East. Markets are responding to the Trump administration’s potential policies and returning to mean values,” Bagga explained. He noted that FII outflows reached ₹16,000 crore in the first week of November alone.
While domestic institutional investors (DIIs) can inject about ₹50,000 crore monthly, the ongoing FII sell-off, coupled with a strong U.S. dollar and high U.S. Treasury yields, is adding pressure on Indian markets. Bagga mentioned that government spending and seasonal consumption could be positive factors, yet the market remains “range-bound” due to persistent FII selling.
Akshay Chinchalkar, Head of Research at Axis Securities, provided a technical perspective, observing a bearish trend in the Nifty. “The Nifty formed a bearish engulfing pattern yesterday, dropping by 1.2% with a 9-to-1 ratio of declining to advancing stocks. The range of 24,541-24,560 acts as key resistance, and without a break past this, with 23,800 as support, we’re likely to see continued choppiness,” Chinchalkar noted. He added that derivatives data further supports a bearish outlook for the near term.