Indian equity benchmarks snapped their two-day winning streak on Friday, November 21, 2025, as investor sentiment was hit by a double whammy of weak global market trends and diminishing hopes for near-term interest rate cuts.
Market Plunge Halts Rally
The benchmark Sensex plummeted by approximately 400 points, erasing the gains from the previous two sessions. This sharp decline was primarily triggered by negative cues from international markets, where concerns over economic growth and persistent inflation are mounting. Simultaneously, investors are increasingly coming to terms with the likelihood that central banks, including the Reserve Bank of India, may delay any easing of monetary policy.
Major Laggers Dragging the Index Down
The sell-off was broad-based, with several heavyweight stocks witnessing significant pressure. Among the Sensex firms, the major laggards were Tata Steel, HCL Tech, Bajaj Finance, Bajaj Finserv, and Bharat Electronics. The performance of these key players was a major contributor to the index's steep fall, reflecting sector-specific anxieties and profit-booking after the recent rally.
Broader Market Impact and Outlook
The market mood was decidedly risk-averse, with the Nifty 50 also trading deep in the red. The fading hopes for a swift rate cut have forced investors to re-evaluate their positions, particularly in rate-sensitive sectors. Analysts suggest that the market is likely to remain volatile in the near term, closely tracking global economic data and central bank commentaries for further direction. The snap of the two-day rally underscores the fragile nature of the current market recovery and the persistent headwinds it faces.
