Indian Stock Market: After a sharp rally in the last two trading sessions, Indian markets struggled to maintain momentum on Tuesday, November 26 as trade tensions resurfaced, triggered by President-elect Donald Trump’s tariff announcements on imports from China, Mexico, and Canada. This raised concerns over the potential impact on global trade relations, prompting investors to book profits at higher levels.
While there were some positive developments in the Middle East, such as reports that Israel was nearing a ceasefire agreement with the militant group Hezbollah, concerns over escalating tensions between Russia and Ukraine, along with Iran's plans to expand its nuclear fuel production, intensified investor fears.
Markets across Asia ended today’s session on a flat note, with India also following suit, as investor sentiment remained subdued. The Nifty 50 ended the session with a modest drop of 0.11%, closing at 24,194, while the Sensex also posted a slight loss of 0.13%, settling at 80,004.
Likewise, the Nifty Midcap 100 index also ended the session with a slight gain of 0.02% at 55,914, while the Nifty Smallcap 100 index managed to post a gain of 0.82% at 18,265.
Among the sectoral indices, the Nifty IT index ended the session 1.07% higher. The index hit a fresh record high of 44,244 as a strong spike in the dollar index kept IT stocks in positive territory. The Nifty FMCG index also closed with a 1% gain, driven by expectations that the BJP-led NDA's victory in the Maharashtra Assembly election could lead the government to bolster social welfare programs, benefiting rural India.
The political continuity in Maharashtra, a key state for real estate players, has spurred buying in real estate stocks too. Consequently, the Nifty Realty index closed the session with a gain of 0.10%, adding to a 2.21% jump in the previous trading session.
On the losing side, the Nifty Auto index tumbled 1.30%, while the Nifty Energy, Nifty Pharma, Nifty Infra, Nifty Oil & Gas, and Nifty PSE indices ended in negative territory.
A total of 28 Nifty 50 stocks ended today’s session in the red, with Adani Group stocks emerging as the biggest losers after Fitch Ratings placed some of the group's bonds on watch for a possible downgrade following US bribery charges. The majority of the group's stocks closed lower, with Adani Enterprises falling by 4.7%.
Auto stocks, including Bajaj Auto, Mahindra & Mahindra, Tata Motors, Eicher Motors, Maruti Suzuki India, and Hero MotoCorp, also saw declines of up to 3%. Similarly, PSU stocks such as Coal India, ONGC, Power Grid, and BPCL experienced selling pressure, closing Tuesday's trade with losses ranging between 1% and 1.5%.
On the winning side, Shriram Finance led the gains, ending the session up by 3.3%. Other stocks such as Britannia Industries, Infosys, Bharat Electronics, Asian Paints, JSW Steel, Wipro, and TCS also ended with gains exceeding 1%.
Rupak De, Senior Technical Analyst, LKP said, "Nifty remained range bound for the second consecutive session, confined between the 21 EMA and the 55 EMA. In the short term, the trend remains positive, with a "buy-on-dips" strategy favouring traders. On the lower end, 23,950–24,000 might act as crucial support levels, while 24,500 could act as a key resistance level. A decisive move above 24,500 might trigger a further sharp rally."
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
