Sensex Drops 1,190 Points, Nifty Falls Below 24,000 Amid Weak Global Cues - Read Now

Mumbai (India), November 28, 2024 – The Indian stock market witnessed a sharp decline today, with the Sensex plummeting by 1,190 points and the Nifty closing below 24,000. Both major indices recorded losses of more than 1% during today’s trading session. The downturn was primarily driven by weak global cues, a slump in Asian markets, and investor concerns over economic factors, including US interest rate policies.

Weak Global Cues Drive Sensex and Nifty Down

The Nifty 50 at the National Stock Exchange (NSE) closed at 23,914.15, down by 360.75 points, while the BSE Sensex ended at 79,043.74, showing a decline of 1,190.34 points. The absence of significant global cues – with the US stock market closed – added to the pressure on Indian stocks. Market experts noted that this lack of international direction, coupled with weak performance in Asian markets, triggered selling activity across various sectors.

Vinnaayak Mehta, founder of The Infinity Group, explained that the Indian stock market was under pressure due to a combination of factors. He cited FII (Foreign Institutional Investor) selling and a strong US dollar as major contributors to the market sentiment. Geopolitical concerns, particularly regarding international trade, also weighed on investors.

Concerns Over US Interest Rate Cuts and Domestic Market Outlook

One of the key factors impacting the market is the uncertainty surrounding US President-elect Donald Trump's policies, particularly regarding US interest rate cuts. Investors are concerned about how these policies will affect global economic conditions and, in turn, influence the Indian stock market. In addition, domestic institutional investors (DIIs) are keeping a close watch on developments ahead of the Indian Union Budget 2025, which is expected to be unveiled next month.

Analysts also pointed out that geopolitical tensions and external economic pressures, including the effects of recent anti-dumping measures in the steel sector, contributed to market volatility. As a result, investors have become more cautious, leading to declines in major sectoral indices.

Sectoral Performance: Banking, IT, and Auto Stocks Lead the Decline

The Sensex and Nifty declines were broad-based, with sectoral indices for Banking, Auto, IT, FMCG, and Metals registering losses. Among the top losers were Infosys, Mahindra & Mahindra, and SBI Life Insurance. However, some sectors managed to perform better, with Media and PSU Banks seeing positive movements.

Despite the overall negative sentiment, Adani Enterprises, Shriram Finance, and State Bank of India were some of the major gainers during the session.

The Impact of FII Selling and Weak Indian Rupee

The market weakness was also exacerbated by continued FII selling, which has been a persistent trend in recent months. Additionally, the weak growth outlook and the declining value of the Indian rupee are contributing to the ongoing FPI (Foreign Portfolio Investor) outflows. Experts believe that these outflows could persist until the rupee stabilizes, further dampening sentiment in the Indian market.

Ajay Bagga, a market and banking expert, suggested that today’s market movement could be attributed to expiry-day volatility. With F&O (futures and options) volumes down, traders are adjusting their positions, causing some additional market swings. He advised not to overinterpret today’s market fall, citing the shortened US trading week due to the Thanksgiving holiday, which led to lower trading volumes globally.

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