Indian stocks finally hit the pause button on Tuesday, November 18, with benchmark indices dropping over 0.40% following a stellar six-day run. The across-the-board weakness, led by heavy profit-booking in metals and tech stocks, was enough to yank the Nifty 50 down by 0.47% to 25,892 while the S&P BSE Sensex retreated 0.38% to end at 86,625. The reversal comes after a period of uninterrupted gains, highlighting just how jittery investors are as global signals turn shaky and the dollar strengthens.
Profit-Taking and Dollar Strength Spell Trouble
It wasn’t just a story of the big benchmarks feeling the heat. The broader market exhibited even deeper cuts, with the Nifty Midcap 100 slumping 0.60% and the Nifty Smallcap 100 shedding over 1%. Select heavyweights offered some support, but it just wasn’t enough to fight the headwind from heavy selling in metals, IT, and realty sectors. Names like Kaynes Technology, Narayana Hrudayalaya, Paytm, and Honasa Consumer ranked among the top losers on a tough trading day.
Analysts say the sharp uptick in the US Dollar Index triggered a wave of profit-booking. The mood soured further as optimism over a U.S. Federal Reserve rate cut in December fizzled, pushing global investors toward safer bets and away from riskier emerging market equities like India’s. “The domestic equity market edged lower as investors booked profits after the recent rebound, mirroring weak global sentiment,” several market participants noted.
Global Factors Keep Indian Markets on Edge
Looking ahead, traders are bracing for this week’s U.S. jobs data—key numbers that could shape the next policy moves from the Fed. That looming uncertainty is feeding into stock prices worldwide, not just in India, with investors staying cautious after recent rallies.
Just for context, the Sensex started the day flat at 85,042.37 before sliding steadily to 84,673.02, down 277.93 points or 0.33%. Resilient banking names gave the indices some resistance, but the selling pressure turned out to be too widespread. With the market now watching both global cues and local corporate earnings, investors may need to strap in for more volatility in the days ahead.
