The Indian equity market witnessed a volatile trading session on Monday, November 24, 2025, closing in the red for the second consecutive day. Despite a positive opening, key benchmark indices succumbed to intense selling pressure in the final hours of trade, dragged down by realty, metal, and auto stocks, even as the information technology sector emerged as a lone bright spot.
The benchmark S&P BSE Sensex settled at 84,900.71, falling 331 points or 0.39%. The broader Nifty 50 followed suit, closing at 25,959.50, down 108 points or 0.42%. The failure to hold the crucial 26,000 level signals near-term weakness and investor caution in the absence of fresh positive triggers.
Sectoral Deep Dive: A Mixed Bag
The market decline was characterized by a stark divergence in sectoral performance.
- Outperforming Sector: Information TechnologyThe Nifty IT index defied the broader bearish trend,closing 0.41% higher. This resilience was fueled by renewed optimism surrounding potential interest rate cuts by the U.S. Federal Reserve. Stocks like Tech Mahindra, Infosys, and Wipro led the gains, as a rate cut in the U.S. could boost profitability for Indian IT firms, which derive a significant portion of their revenue from the American market.
- Underperforming Sectors: Realty and MetalsIn contrast,the Nifty Realty and Nifty Metal indices were among the top losers, shedding up to 1%. Profit-booking after recent rallies and concerns over slowing global demand weighed heavily on metal stocks. Similarly, realty stocks took a breather, reflecting the sector-sensitive nature of the day’s sell-off. Pharma stocks also traded with a negative bias, adding to the overall market weakness.
Technical Analysis and Key Levels
From a technical perspective, the market action points to a loss of momentum. Analysts noted that the Nifty 50 not only failed to sustain above the psychologically important 26,000 mark but also closed below its 10-day exponential moving average (EMA), a sign of short-term bearishness.
The immediate support for the Nifty is now placed in the 25,800 to 25,850 zone. A decisive break below this support band could open the doors for a further correction towards the 25,700 level. On the upside, the 26,100 level is expected to act as a stiff resistance in the immediate short term.
Institutional Activity and Currency Movement
The sentiment was further dampened by the trading activity of Foreign Institutional Investors (FIIs), who were net sellers in the previous session to the tune of ₹1,766 crore. This continued selling by FIIs has been a persistent overhang on the market.
However, Domestic Institutional Investors (DIIs) provided a counterbalance, acting as net buyers and injecting ₹3,161 crore into the market, which helped prevent a steeper decline.
In a positive development, the Indian Rupee strengthened against the US Dollar, appreciating by 46 paise to close at 83.20 (provisional), supported by the positive momentum in IT stocks and broader dollar weakness.
Broader Market Sentiment and Economic Outlook
The bearish sentiment was not just limited to large-cap stocks. The broader market underperformed significantly, with the Nifty Smallcap 100 index declining by 0.8%. Notably, this index slipped below its 200-day moving average, a key long-term trend indicator, signaling heightened risk-off sentiment among investors.
The underlying economic narrative for India, however, remains robust. Leading global consultancy Deloitte has projected a baseline GDP growth of 6.7% to 6.9% for the current fiscal year. This growth is expected to be fueled by resilient domestic demand, continued government focus on infrastructure spending, and ongoing structural reforms.
Looking ahead, all eyes are on the domestic macroeconomic data. The release of India’s GDP figures and the upcoming monetary policy decision by the Reserve Bank of India (RBI) on December 5 will be critical in determining the market’s next directional move. RBI Governor has already hinted that there is room for more rate cuts, providing a hopeful undertone for the medium to long term.
