Indian stock market faced another challenging day on November 14, 2024, with the Sensex falling by 111 points to close at 77,580, while the Nifty settled at 23,532, down 26 points. This marks the sixth consecutive day of losses for the Nifty index, which has seen a significant drop of over 2,800 points in just a week.
After a positive start, Indian equity markets faced selling pressure, closing in the red on November 14. This marks the sixth consecutive decline for the Nifty and the third for the Sensex. Analysts warned that risk-off sentiment among investors could persist due to a weak September earnings season and continued foreign outflows for India Inc. Additionally, a strong US dollar and rising bond yields are increasing pressure on Indian equities, as uncertainty around US President-elect Donald Trump’s economic policies grows.
At the close, the Sensex was down 110.64 points, or 0.14 percent, at 77,580.31 and the Nifty was down 26.30 points, or 0.11 percent, at 23,532.70. Market breadth was in favor of the gainers as around 2,039 stocks advanced, 1,718 stocks declined and 88 stocks remained unchanged.
Notably, BSE and NSE exchanges will be closed tomorrow, Friday, November 15, 2024 due to Prakash Gurpurab Shri Guru Nanak Dev Jayanti. Today is the last official trading session of the current week.
Out of the 50 constituent stocks of the benchmark NSE Nifty50, 29 ended lower, led by Hindustan Unilever, Britannia Industries, BPCL, Tata Consumer and Nestlé India with losses of up to 2.92 percent on Thursday.
While noting key technical levels for the Nifty, Angel One Head of Research, Technical and Derivatives, Sameet Chavan said, “The immediate resistance for the Nifty is now around 23,800, followed by 24,000. Further weakness will push prices towards the 50-WEMA at 23,200, which is aligned with the 61.8 percent retracement of the rally since Election Day.”
Both Sensex and Nifty have lost more than 2 percent this week. The frontline indices are now down 10 percent from their September highs, the second time the Nifty has entered correction territory since the Covid-19 selloff in March 2020.
Concerns over the outflow of foreign institutional investors (FIIs) have increased in the wake of China’s recent stimulus package. FIIs, who had sold heavily throughout October, continued the trend into November and pulled out of Indian equities at Rs. 21,000 crores in sales.
A healthy correction is underway in India, led by smallcaps, says Chris Wood.
There is a huge domestic flow coming into the market.
Companies are raising capital to take advantage of higher valuations.
The good news about foreign sellers is that they have the ability to buy any sharp correction.
The Indian rupee was marginally lower at 84.40 per dollar on Thursday from Wednesday’s close of 84.38.