Nifty and Sensex Slip from Record Highs

Market Update at 12:30 PM: India’s equity benchmarks, the Nifty and the Sensex, eased by 0.3 per cent each after trading near record levels, as broad-based profit booking weighed on the indices. The decline came even as investors assessed global cues and sector-specific developments.

Asian markets also moved lower, with the broader index dropping 2.3 per cent after U.S. jobs data signalled faster employment growth in September. The stronger labour data reduced expectations of a Federal Reserve rate cut in December, pushing global equities into a risk-off mode.

Most major sectors closed in the red. The metals index fell 1.5 per cent, led by weakness in Hindalco after a fire incident at Novelis’ aluminium plant in New York. Other metal stocks were also under pressure as the government extended exemption from mandatory quality control orders for select steel grades.

Broader markets mirrored the trend, with Small-Cap and Mid-Cap indices slipping around 0.8 per cent each.

Amid the overall decline, Mahindra & Mahindra gained 1.3 per cent after announcing its growth plans, making it one of the few stocks to buck the weak market sentiment.

Market Update at 10:00 AM: Indian benchmark indices opened lower on Friday, tracking weakness across Asian markets, after U.S. jobs data failed to offer clarity on the timing of interest rate cuts. The Nifty 50 fell 0.32 per cent to 26,109.55, while the BSE Sensex declined 0.33 per cent to 85,347.4 as of 9:15 a.m. IST. Both indices had settled less than 0.5 per cent below their all-time highs from September 2024 in the previous session.

All 16 major sectors were in the red at the open, though the declines remained marginal. Broader market indices also dipped, with the CNX Smallcap and CNX Midcap slipping around 0.1 per cent each.

Asian peers slid 2.3 per cent after a 1 per cent rise on Thursday, mirroring overnight weakness in U.S. markets. Wall Street indices fell as September employment data signalled faster job growth, reducing expectations of a potential U.S. rate cut in December. Higher rates in the U.S. typically make emerging markets like India less attractive for overseas investors.

Concerns over stretched technology valuations resurfaced, contributing to the U.S. market decline, despite Nvidia reporting Quarterly Results that exceeded consensus expectations. The pressure on global tech stocks overshadowed the positive earnings update.

Pre-Market Update at 7:40 AM: Indian equity benchmark indices are expected to open lower on Friday, November 21, as weak global cues weigh on sentiment. Trends on the GIFT Nifty indicated a negative start, with the index trading 39 points lower at Rs 26,179 around 7:26 AM. Most Asian markets were in the red in early trade, while US indices slipped overnight as technology stocks came under selling pressure.

On the domestic front, India’s core sector reported no year-on-year growth in October, marking its slowest performance in over a year. Core output had risen 3.3 per cent in September and 6.5 per cent in August (revised). In comparison, September 2024 recorded a 2.4 per cent expansion.

Foreign Institutional Investors were net buyers on Thursday, November 20, purchasing equities worth Rs 283.65 crore. Domestic Institutional Investors continued their buying streak for the 20th consecutive session, adding Rs 824.46 crore.

On Thursday, the Nifty 50 and Sensex closed higher, gaining more than 0.50 per cent and touching fresh 52-week highs. The Nifty 50 ended at 26,192.15, up 139.50 points, while the Sensex closed 446.21 points higher at 85,632.68. Both indices are now about 0.32 per cent below their all-time highs. India VIX rose over 1 per cent, moving above 12. Sectoral performance remained mixed, with gains in Financial Services, Auto, Bank, Energy, FMCG, and Metal, while Realty, Pharma, PSU Bank, and Media ended lower. The broader market also showed divergence, with the Nifty Midcap 100 ending higher and the Nifty Smallcap 100 declining.

In the US, markets fell sharply on Thursday as early gains faded. The Dow Jones dropped 386.51 points to 45,752.26, the S&P 500 declined 103.40 points to 6,538.76, and the Nasdaq fell 486.18 points to 22,078.05. Major technology stocks also weakened, with Nvidia down 3.15 per cent, AMD falling 7.84 per cent, Amazon declining 2.49 per cent, Microsoft slipping 1.6 per cent, Intel down 4.42 per cent, Palantir falling 5.85 per cent, and Tesla down 2.21 per cent. Fresh labour data showed US nonfarm payrolls rising by 119,000 in September, rebounding from a revised decline of 4,000 in August, while the unemployment rate rose to 4.4 per cent.

Japan’s factory activity continued to contract, with the flash Manufacturing PMI for November at 48.8, marking the fifth straight month below 50. The dollar index hovered near a five-and-a-half-month high at 100.20, heading for its strongest week in over a month.

Gold prices held steady, with spot gold at USD 4,082.90 per ounce, up 0.1 per cent, following mixed US employment signals. Crude oil slipped after Ukraine signalled openness to peace discussions. Brent crude was down 0.66 per cent at USD 62.97 per barrel, while WTI futures declined 0.69 per cent to USD 58.59.

For today, SAIL and Samaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.