Nifty 50 Falls 0.21% on Friday: Market Faces Continued Volatility Amid Earnings Concerns

Nifty 50 – On Friday, November 8, the Indian stock market continued its downward trajectory, with major large-cap stocks such as Reliance Industries, ICICI Bank, State Bank of India, and Trent facing sharp selloffs. This selling pressure weighed heavily on the frontline indices, causing them to finish the session in the red. Despite the US Federal Reserve’s 25 basis point rate cut on Thursday, which was expected to provide relief, investor sentiment remained subdued as concerns about softening Q2 earnings persisted.

Indian Market Faces Continued Weakness: Nifty 50 and Sensex Slide

The Nifty 50 index ended the day with a slight loss of 0.21%, closing at 24,148 points. Over the course of the week, the index declined by 0.64%, reflecting ongoing concerns in the market. Similarly, the S&P BSE Sensex fell 55.70 points, or 0.07%, to close at 79,486 points, marking a weekly decline of 0.30%.

Prashanth Tapse, Senior VP of Research at Mehta Equities, commented on the day’s performance, stating, “After gyrating nearly 700 points in early trades, markets moved in a range-bound manner thereafter and ended marginally lower due to selective selling in banking, telecom, metal, oil & gas, and realty stocks.” Tapse also noted that despite a recovery in global indices, Indian markets are still under pressure due to foreign institutional investor (FII) outflows. He added, “The US Fed rate cut failed to enthuse local investors, as the undertone remains cautious with a negative bias.”

Sectoral Performance: Realty and Metals Hit Hard, IT Stocks Show Resilience

The broader market experienced heavier selling pressure, with the Nifty Midcap 100 index falling 1.42% to 56,300. The Nifty Smallcap 100 index also dropped 1.76%, closing at 18,433.

Among the sectoral indices, the Nifty Realty index continued its bearish trend for the second consecutive day, falling nearly 3% to 967.7. The Nifty Media index also dropped by 2.09%, while the Nifty PSU Bank, Nifty Oil & Gas, Nifty Energy, and Nifty Metal indices all closed the session with losses exceeding 1%.

On a more positive note, IT stocks showed resilience as the US Federal Reserve’s 25 basis point rate cut sparked renewed interest in the sector. The Nifty IT index closed with a 0.71% gain. Similarly, the Nifty FMCG index bounced back from a sharp selloff in the previous session, finishing 0.31% higher. The Nifty Pharma and Nifty Auto indices ended the day flat, showing little movement.

Top Performers: Mahindra & Mahindra and Titan Lead the Charge

Among the Nifty 50 stocks, 23 ended the session in the green. Mahindra & Mahindra led the pack with a gain of 2.9%, as investors reacted positively to the company’s Q2 performance, which exceeded street expectations. Other notable gainers included Titan Company, Tech Mahindra, Infosys, Nestle India, HUL, Power Grid, and Cipla, with each posting gains of more than 1%.

On the downside, Trent was the biggest loser among the Nifty 50 constituents. The stock extended its losing streak for the second consecutive day, falling 3.2% to ₹6,298 after reporting weak Q2 earnings. Trent’s two-day slide now stands at 9.5%, with the stock correcting by 24.52% from its all-time high of ₹8,345 in mid-October. Other stocks such as Coal India, Asian Paints, Tata Steel, and 11 others ended the session with losses of over 1%.

Market Outlook: Cautious Investor Sentiment Amid FII Outflows

Vinod Nair, Head of Research at Geojit Financial Services, commented on the ongoing market consolidation, saying, “Consolidation continued in the market as investors stayed cautious due to disappointment in earnings and the flight of FIIs.”

Looking ahead, Nair noted that while the US Fed continues its rate-cutting cycle to stimulate the economy, with expectations of another 25 basis point cut in December, inflation in India is expected to rise in October, and the strengthening US Dollar may prompt the Reserve Bank of India (RBI) to hold rates in the near term.

Technical Outlook: Key Levels to Watch for Nifty 50

Rupak De, Senior Technical Analyst at LKP Securities, provided a technical analysis of the Nifty 50 index. He believes that the 24,000 level will serve as a strong support zone for the index. De said, “If it holds above this level, Nifty bulls may still have an opportunity to regain momentum. However, a break below 24,000 could further weaken the market.”

He also noted that the RSI indicator remains in a positive crossover, suggesting that short-term momentum is likely to stay strong. In the near term, De predicts a potential recovery toward 24,500, but cautioned that a dip below 24,000 could lead to a broader market correction.

Indian Stock Market Faces Mixed Sentiment Amid FII Outflows and Earnings Concerns

In summary, the Indian stock market faced continued pressure on November 8, with sharp declines in key sectors such as realty, metals, and PSU banks, and foreign institutional investor outflows putting further strain on the market. While IT stocks showed resilience and Nifty 50 posted minor gains, concerns about Q2 earnings and FII flight remain key factors influencing investor sentiment. The outlook for the market remains cautious, with important technical levels such as 24,000 and 24,500 acting as key support and resistance zones in the short term.