Sensex, Nifty: Why stock market indices are falling today
Infosys fell 2.86 per cent to Rs 1,869.16. Tech Mahindra, HCL Tech and TCS fell 2.68 per cent, 1.91 per cent and 1.42 per cent, respectively. M&M fell 2.52 per cent to Rs 2,934.7. The auto major recently unveiled of two electric SUV models.
- Nov 28, 2024,
- Updated Nov 28, 2024 3:03 PM IST
Benchmark indices Sensex and Nifty fell on Thursday amid the expiry of monthly futures and options contracts and reports of Russian strikes on Ukraine’s energy infrastructure. The indices fell as IT stocks Infosys, Tata Consultancy Services Ltd (TCS) and HCL Technologies Ltd, and select index heavyweights such as Reliance Industries, fell after recent rally in largecaps. In the broader market, however, the mood was positive, with 2,183 actively traded stocks rising and only 1,444 trading lower by 11 am.
Pashanth Tapse, Senior VP (Research) at Mehta Equities said the market tanked sharply on high geopolitical developments escalating news on the Russia-Ukraine war again. "As per some social media reports Energy infrastructure is once again targeted by the enemy's massive strike,. Last week markets were coming out of the Lebanon ceasefire, but the closing remarks were a bit hawkish."
Besides, Tapse said the November F&O expiry day, along with such headlines bring a lot of volatility in the market.
"A technical close below 23,800 for Nifty would be a make-or-break level for Nifty. I expect markets to trade sideways with negative biased pressure. On the resistance side, 24,350 acts as strong resistance; any close above this can turn the market mood,” he said.
Nifty stood at 24,100.85, down 174.05 points or 0.73 per cent. The BSE Sensex fell 605.38 points, or 0.75 per cent, to 79,628.70. The fall in the key domestic indices was in line with major Asian markets as markets across Taiwan, Hong Kong, China and Korea fell up to 1.5 per cent today, following an overnight fall in US stocks. US PCE inflation index ticked higher to 2.8 per cent in October, data showed overnight, thus raising concerns over future Fed rate cuts. The flaring up of geopolitical tensions added to the woes.
Already dollar is rising as US President-elect Donald Trump said that he will levy tariffs on all imports from China, Mexico and Canada on Day 1 of his presidency. This includes a 25 per cent tariff on all goods coming from Mexico and Canada and an additional 10 per cent tariff on China. While it should provide a fresh lease of life to the ‘China + 1’ trade for India in sectors chemicals, auto ancillaries, wires & cables, solar, solar cells & modules, tiles and numerous other US exporting sectors from India, it is also pushing dollar higher. Higher tariffs may increase inflation in the US further in the short term and can further dampen Fed rate cut outlook.
"A strong dollar is a negative for emerging markets and, therefore, FPIs are unlikely to turn aggressive buyers. Also large institutions would prefer to wait and watch for clarity on Trump’s policies and its likely impact on trade and the global economy. Market action could be stock-specific in response to news flows, like in the case of Adani stocks. A healthy trend in the market is the fundamentally-driven up move in quality banking stocks. The resilience in the health care segment can sustain," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Software exporter Infosys fell 2.86 per cent to Rs 1,869.16. Tech Mahindra, HCL Tech and TCS fell 2.68 per cent, 1.91 per cent and 1.42 per cent, respectively. M&M fell 2.52 per cent to Rs 2,934.70 after the recent rise following its unveiling of two electric SUV models.
"We believe M&M has addressed the shortcomings of an EV in India, which have impacted the adoption rates so far, with: real world range of 500km+, acquisition price points at proximity of Internal Combustion Engine (ICE) peers, and top- end/luxury comparable features making it very aspirational and capable of using it as a primary car by customers," Nomura India said.
Sun Pharma and Nestle India fell over 1 per cent each.MOFSL said the market correction from September highs has cooled off the valuations in largecaps, even as mid and smallcaps trade at expensive multiples. Nifty-50 is now trading at 19.6 times FY26E EPS against 30 times for midcap index and 23 times for smallcap index on one-year forward PE basis. But earnings moderation stays a big concern, it said.
Benchmark indices Sensex and Nifty fell on Thursday amid the expiry of monthly futures and options contracts and reports of Russian strikes on Ukraine’s energy infrastructure. The indices fell as IT stocks Infosys, Tata Consultancy Services Ltd (TCS) and HCL Technologies Ltd, and select index heavyweights such as Reliance Industries, fell after recent rally in largecaps. In the broader market, however, the mood was positive, with 2,183 actively traded stocks rising and only 1,444 trading lower by 11 am.
Pashanth Tapse, Senior VP (Research) at Mehta Equities said the market tanked sharply on high geopolitical developments escalating news on the Russia-Ukraine war again. "As per some social media reports Energy infrastructure is once again targeted by the enemy's massive strike,. Last week markets were coming out of the Lebanon ceasefire, but the closing remarks were a bit hawkish."
Besides, Tapse said the November F&O expiry day, along with such headlines bring a lot of volatility in the market.
"A technical close below 23,800 for Nifty would be a make-or-break level for Nifty. I expect markets to trade sideways with negative biased pressure. On the resistance side, 24,350 acts as strong resistance; any close above this can turn the market mood,” he said.
Nifty stood at 24,100.85, down 174.05 points or 0.73 per cent. The BSE Sensex fell 605.38 points, or 0.75 per cent, to 79,628.70. The fall in the key domestic indices was in line with major Asian markets as markets across Taiwan, Hong Kong, China and Korea fell up to 1.5 per cent today, following an overnight fall in US stocks. US PCE inflation index ticked higher to 2.8 per cent in October, data showed overnight, thus raising concerns over future Fed rate cuts. The flaring up of geopolitical tensions added to the woes.
Already dollar is rising as US President-elect Donald Trump said that he will levy tariffs on all imports from China, Mexico and Canada on Day 1 of his presidency. This includes a 25 per cent tariff on all goods coming from Mexico and Canada and an additional 10 per cent tariff on China. While it should provide a fresh lease of life to the ‘China + 1’ trade for India in sectors chemicals, auto ancillaries, wires & cables, solar, solar cells & modules, tiles and numerous other US exporting sectors from India, it is also pushing dollar higher. Higher tariffs may increase inflation in the US further in the short term and can further dampen Fed rate cut outlook.
"A strong dollar is a negative for emerging markets and, therefore, FPIs are unlikely to turn aggressive buyers. Also large institutions would prefer to wait and watch for clarity on Trump’s policies and its likely impact on trade and the global economy. Market action could be stock-specific in response to news flows, like in the case of Adani stocks. A healthy trend in the market is the fundamentally-driven up move in quality banking stocks. The resilience in the health care segment can sustain," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Software exporter Infosys fell 2.86 per cent to Rs 1,869.16. Tech Mahindra, HCL Tech and TCS fell 2.68 per cent, 1.91 per cent and 1.42 per cent, respectively. M&M fell 2.52 per cent to Rs 2,934.70 after the recent rise following its unveiling of two electric SUV models.
"We believe M&M has addressed the shortcomings of an EV in India, which have impacted the adoption rates so far, with: real world range of 500km+, acquisition price points at proximity of Internal Combustion Engine (ICE) peers, and top- end/luxury comparable features making it very aspirational and capable of using it as a primary car by customers," Nomura India said.
Sun Pharma and Nestle India fell over 1 per cent each.MOFSL said the market correction from September highs has cooled off the valuations in largecaps, even as mid and smallcaps trade at expensive multiples. Nifty-50 is now trading at 19.6 times FY26E EPS against 30 times for midcap index and 23 times for smallcap index on one-year forward PE basis. But earnings moderation stays a big concern, it said.