Stock market today: Sensex, Nifty 50 continue downtrend; What is driving the market down? Explained by 5 factors

Today’s stock market: Indian stock market benchmarks Sensex and Nifty 50 continued their downward march on Thursday (Nov 21) amid weak global signals, a day after ending their multi-day losing streak.

While the medium and small-sized segments in the domestic market also suffered losses, there was a wide sales wave.

The overall market capitalization (m-cap) of companies listed on BSE is almost ₹Approximately 425 lakh crore ₹431 lakh crore in the previous session, making investors poorer by approx. ₹6 lakh crore in a single session.

Sensex opened at 77,711.11 against its previous close of 77,578.38 and fell 1 percent to 76,802.73. The index eventually closed at 77,155.79, with a decrease of 0.54 percent.

Nifty 50, on the other hand, opened at 23,488.45 against its previous close of 23,518.50 and fell by over 1 percent to 23,263.15. It closed at 23,349.90 with a loss of 0.72 percent.

BSE Midcap and Smallcap indices closed down 0.37 percent and 0.67 percent respectively.

Sector indices today

Most sectoral indices ended with losses on NSE; Nifty PSU Bank lost nearly 3 percent in value, followed by Nifty Metal and Media indices falling over 2 percent.

However, Nifty Realty gained nearly 1 percent and Nifty IT ended with a gain of half a percent.

5 main factors pulling the market down

Both major indices posted modest gains in the previous session on Tuesday. But they continued their downward march on Thursday amid weak earnings, geopolitical tensions and ongoing concerns about valuation tensions. US indictment Adani Group President Gautam Adani and other top brass on bribery charges dealt a fresh blow to sentiment.

Let’s take a look at the key factors behind the sell-off in the market.

1. Adani saga

Many Adani Group shares hit lower levels in early trading on Thursday after Gautam Adani was indicted in New York for his role in a multibillion-dollar bribery and fraud scheme.

According to US officials, more than $250 million in bribes were promised to Indian Government officials to secure solar energy contracts. Shares of Adani Enterprises and Adani Ports lost 23 percent on the BSE. Both stocks were the biggest losers of the Nifty 50 index.

2. Concerns about weak Q2 earnings

Second quarter earnings were significantly weaker. The July-September quarter figures of the majority of companies disappointed the markets.

aspect mint report It was emphasized that the total revenue of 2,996 companies listed on BSE, which were part of the analysis, increased by 8.1 percent on an annual basis, slower than the 9.5 percent in the first quarter. As a result, net profit growth slowed from 9 percent to 8.9 percent. The banking, financial services and insurance (BFSI) sector has again become a saving grace: Without it, revenue growth fell from 6.3 percent to 4.6 percent and net profit growth rose from 3.3 percent to 4.4 percent . percentage.

“Global cycles such as oil and gas, as well as metals, cement, chemicals and consumers have also put pressure on earnings growth. While consumption has emerged as a weak spot, select segments of BFSI are experiencing asset quality stress. Weakness in government spending has also led to moderation in earnings.” “It was one of the factors.” Sneha Poddarobserved Motilal Oswal Financial Services vice president of research and asset management.

3. Increasing geopolitical tensions

New rise in markets Russia-Ukraine war It further demoralized the market. President of Russia Vladimir Putin The United States signed a revised nuclear doctrine on Tuesday, just days after allowing Ukraine to use long-range missiles against Moscow.

“The increasing tension in the Ukraine-Russia war may put pressure on the markets. The element of uncertainty caused by the increases is high and therefore most market participants are likely to be in a wait-and-watch mode. However, any sharp decline in the market seems unlikely as the major market, the US, has largely underestimated the rise,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

4. Heavy foreign capital outflow

Foreign portfolio investors (FPIs) have been selling Indian stocks relentlessly, which is among the key reasons behind the recent market downtrend.

According to NSDL data, FPIs sold Indian stocks worth $200 million. ₹They sold shares worth 94,017 crore in October ₹25,942 crore from November to 19th.

5. Technical factors

Nifty 50 is trading below the 200-DMA at 23,575. Experts say that the market fabric is weak and the 23,100-22,800 levels are critical.

Market Chief Anand James said, “23,100 and 22,800 are the levels where Nifty is slowly slipping. At the same time, we have seen buying coming out of the 23,300 level. As long as this level is maintained, we may see some decline.” Strategist at Geojit Financial Services.

Broader indices are also under pressure but are currently finding support near their long-term moving average, the 200-day exponential moving average (DEMA), said Ajit Mishra, senior vice president of research at Religare Broking.

“Investors are advised to maintain a cautious stance and prioritize a hedged approach to navigate the current market conditions. 22,700-23,100 is the key support zone, while 23,800-24,200 is the key resistance zone of the index,” Mishra said.

Shrikant Chouhan, head of equity research at Kotak Securities, said the current market texture is weak but oversold.

“Currently, 23,350 and 23,400 will be the key levels for investors. Above 23,400, we may see a quick relief rally to 23,500-23,550. On the other hand, below 23,250, the selling pressure is likely to accelerate. Below the same market, below 23,250, selling pressure is likely to accelerate. It is missing up to 23,175-23,150,” Chouhan said.

“The index remained below the 200-DMA, which indicates that the weak sentiment continues in the market. The RSI indicator entered a downward trend again, further supporting the negative sentiment. In the short term, the sentiment remains weak with the support of 23,200. Senior Technical Analyst Rupak De said, “This level is in the market could trigger a correction,” he said in LKP Securities.

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