Market Ends Lower Amid Global Weakness
The Indian stock market concluded a challenging week on a negative note, with the benchmark indices, the Sensex and Nifty 50, closing lower on Friday, November 7. This marked their third consecutive session of declines, primarily driven by weak global cues and persistent foreign fund outflows.
During the trading session, both indices witnessed a sharp fall of nearly 1% before staging a significant recovery to end the day with marginal losses. The Sensex slipped 95 points, or 0.11%, to settle at 83,216.28. Similarly, the Nifty 50 ended at 25,492.30, down 17 points, or 0.07%. In a contrasting performance, the BSE Midcap index managed to gain 0.25%, while the Smallcap index closed almost flat.
Analyst Insights and Market Outlook
According to Ajit Mishra, SVP of Research at Religare Broking Ltd., the markets ended lower for the second week in a row. He attributed the downturn to a combination of factors, including persistent foreign institutional investor (FII) outflows, mixed corporate earnings, and cautious global sentiment. Despite some optimism from progress in India-US trade talks, the overall mood remained subdued during the holiday-shortened week, with both benchmarks declining over 0.80%.
Mishra anticipates continued volatility in the near term, influenced by global uncertainties and a heavy influx of economic and earnings data. "While short-term sentiment could stay cautious due to persistent FII outflows and uneven earnings, improving domestic macro indicators and steady corporate performance may provide underlying support," he stated. He advised traders to adopt a stock-specific approach, focusing on sectors like banking (particularly PSU banks), auto, and select metal stocks. For investors, the emphasis should remain on earnings quality and long-term growth prospects.
Top Five Market Triggers for the Coming Week
1. Q2 FY26 Results: The earnings season continues with several prominent companies announcing their quarterly results. The performance of firms like Bajaj Finance, ONGC, Bajaj Finserv, Asian Paints, and Tata Steel will be closely monitored for sector-specific trends.
2. Inflation Data: The upcoming week is crucial for macroeconomic data. All eyes will be on India's Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation figures, which are expected to provide clarity on the inflation trajectory and influence future monetary policy decisions.
3. AI-Related Stocks and Global Trade: Market participants will also keep a close watch on the movement of AI-related stocks and any new developments in global trade deals, as these are likely to impact overall market sentiment.
4. IPO Activity: The primary market is set to remain vibrant. Six new IPOs (four mainboard and two SME) are scheduled to open for subscription. Furthermore, the listings of highly anticipated IPOs like Groww, Lenskart, and Pine Labs are expected to generate significant buzz.
5. Gold Prices: Gold prices experienced a decline for the third consecutive week, pressured by a stronger US dollar and a cautious stance from the Federal Reserve. On the MCX, December gold futures fell by ₹165 to close at ₹1,21,067 per 10 grams. Experts suggest gold will remain range-bound, with prices expected to fluctuate between ₹1,18,500 and ₹1,24,000, influenced by upcoming US and Indian CPI data.
