Bearish Trends Deepen as Nifty and Sensex Slump

Indian stock markets experienced a decline on Monday, with major indices Nifty 50 and Sensex opening lower. Experts suggest U.S. markets attract investments due to Trump's policies, impacting Indian markets. Most sectoral indices faced pressure, except for a few. FPIs sold significant shares, further weakening the market.

The Indian stock markets continued their downward trajectory on Monday, as persistent bearish trends dragged the indices lower. The Nifty 50 index opened with a reduction of 60 points, marking a 0.25 percent dip, settling at 24,087.25 points. Meanwhile, the Sensex recorded a decline of 174 points, or 0.22 percent, opening at 79,312.13.

Market analysts predict that Indian equities may experience sustained outflows, as the U.S. markets, fueled by the resurgence of pro-business policies under Trump, present a more attractive investment avenue. Earnings downgrades pose an additional challenge, with corporate earnings in the U.S. forecasted to rise due to anticipated tax cuts. In contrast, India grapples with disappointing earnings projections for FY25, exerting downward pressure on stock prices.

The sectoral indices struggled, with most sectors in decline except Nifty Pharma, Nifty Consumer Durables, and Nifty Healthcare. From the Nifty 50 components, 14 stocks saw early gains while 33 reported losses. Noteworthy corporate announcements are expected, including from ONGC, Hindalco Industries, and Britannia Industries, which may influence market sentiment. FPI activity has notably influenced the market, with substantial offloading contributing to an 8 percent drop in Nifty 50 and Sensex since October.

Data indicates that FPIs divested stocks worth Rs 19,994 crore over the initial five trading days of November. A minor negative trend appears on the Nifty's daily chart, suggesting ongoing market consolidation. Technical analysis indicates a weak stance in the near term, with support expected at 24,000 points, risking a retest of 23,800 points.

Asian markets mirrored the bearish trend, with Hong Kong's Hang Seng dropping over 2.6 percent, South Korea's KOSPI down more than 1 percent, Japan's Nikkei 225 seeing a 0.39 percent reduction, and Taiwan's weighted index declining by 0.68 percent. (ANI)

(With inputs from agencies.)