Market Extends Losses Amid Global Uncertainties
The Indian equity market witnessed a second consecutive day of decline on Monday, November 24, as investors engaged in profit-taking across most sectors amid mixed global signals. The benchmark indices closed nearly half a percent lower, reflecting cautious sentiment ahead of key global events and the monthly derivatives expiry.
Key Index Performance
The Sensex slipped 331 points, or 0.39%, to settle at 84,900.71, while the Nifty 50 dropped 109 points, or 0.42%, closing at 25,959.50. The broader market indices also faced selling pressure, with the BSE Midcap index declining 0.27% and the Smallcap index falling 0.83%.
Market trading began on a positive note but remained range-bound for most of the session. However, a sharp sell-off during the final half hour dragged the indices significantly lower, resulting in the day's substantial losses.
Sectoral Performance and Market Sentiment
Sectorally, all major indices except Information Technology closed in negative territory. Realty, metal, and energy sectors emerged as the worst performers, leading the market downturn. The overall market breadth remained weak, indicating broad-based selling pressure.
Ajit Mishra, SVP of Research at Religare Broking Ltd, commented: "The muted performance was driven by risk aversion amid global uncertainties and continued FII selling, which overshadowed domestic resilience."
Stocks to Watch: Key Corporate Developments
Bharat Electronics: The Navratna defence PSU signed a Joint Venture Cooperation Agreement with France's Safran Electronics and Defence to manufacture the HAMMER smart precision air-to-ground weapon in India.
Dr Reddy's Lab: The pharmaceutical major secured European Commission approval for AVT03 (denosumab), a proposed biosimilar to Prolia and Xgeva, used for treating osteoporosis.
Paras Defence: The company entered into an MoU with the Inter-University Accelerator Centre in New Delhi to collaborate on developing commercial-grade MRI magnet systems in India.
HUDCO: Signed a memorandum of understanding with the National Institute of Urban Affairs to strengthen collaboration on urban development and infrastructure projects.
GAIL India: According to Reuters reports, GAIL has floated a swap tender offering two LNG cargoes loaded in the US in return for receiving two cargoes in India.
Ceigall India: Received a letter of intent from REC Power Development and Consultancy Ltd to set up the 400/220 kV Velgaon GIS substation under the tariff-based competitive bidding mechanism.
Hindustan Unilever: Kwality Wall's appointed seven new board members comprising one non-executive director, two executive directors, and four independent directors ahead of its demerger from HUL.
ACME Solar: The company won the bid for a 130 MW round-the-clock renewable energy project in a tender issued by Railways (REMCL) with a winning tariff of ₹4.35 per unit.
Sunteck Realty: The London Court of International Arbitration confirmed that all claims have been withdrawn and arbitration proceedings terminated between Sunteck Lifestyles and its joint venture partner, Grand Valley General Trading LLC.
Pavna Industries: Signed an MoU with the Uttar Pradesh government, planning to invest ₹250 crore over the next three to five years in the proposed project.
Market Outlook and Investor Caution
The continued market decline reflects growing investor caution amid global economic uncertainties and persistent foreign institutional investor selling. The monthly derivatives expiry and upcoming global economic events are expected to keep market volatility elevated in the near term.
While domestic fundamentals remain resilient, global headwinds and sectoral rotations are likely to dictate market direction in the coming sessions. Investors are advised to maintain a cautious approach and focus on fundamentally strong stocks with robust growth prospects.
