Markets Extend Second Week of Gains Even as Rupee Falls to Record Low

Market Extends Gain in Second Week as Rupee Slips to Record Low

The market extends gain in second week, supported by steady domestic institutional buying even as global uncertainties continued to influence investor sentiment. Indian equity indices managed to sustain their upward momentum for the week ended November 21, despite facing headwinds from the weakening rupee, mixed global cues and concerns around delayed progress on the US-India trade deal.

Throughout the week, volatility remained high as traders assessed the impact of strong US non-farm payroll data, which clouded expectations of an early Federal Reserve rate cut. At the same time, softer domestic manufacturing PMI numbers and the rupee’s persistent slide added to the cautious undertone in the market.

Sensex and Nifty Maintain Positive Traction Amid Mixed Global Sentiment

For the week, the BSE Sensex gained 669.14 points, or 0.79%, closing at 85,231.92. The Nifty50 also advanced 158.1 points, or 0.61%, to settle at 26,068.15, marking two straight weeks of gains. This performance highlights the market’s resilience at a time when global triggers remained uncertain and currency pressures intensified.

Large-cap stocks contributed modestly to the broader market support. Major gainers included Hero MotoCorp, Max Healthcare Institute, Eicher Motors, Bharti Airtel and Siemens, while Vodafone Idea, JSW Energy, Tata Motors Passenger Vehicles, Bajaj Holdings & Investment, Hindustan Zinc, Vedanta and DLF ended the week in the red.

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Broader Market Shows Divergence as Mid and Small Caps Correct

While the market extends gain in second week, the broader market witnessed clear consolidation.
The BSE Mid-cap Index slipped 1%, dragged down by names such as Kaynes Technology India, Supreme Industries, Bharat Dynamics, Star Health & Allied Insurance Company, Tube Investments of India and Kansai Nerolac Paints. However, selective buying was visible in Mahindra & Mahindra Financial Services, GMR Airports, 360 One Wam, PB Fintech, LT Technology Services and Hexaware Technologies.

The pressure was even more pronounced in the small-cap segment. The BSE Small-cap Index fell 2%, with companies like Fischer Medical Ventures, Spectrum Electrical Industries, RIR Power Electronics, Jai Balaji Industries, Websol Energy System and Deccan Cements witnessing sharp declines ranging between 15–30%. On the other hand, gainers included Astec Lifesciences, Sri Adhikari Brothers Television, VLS Finance, 5paisa Capital, VL E-Governance and IT Solutions and Narayana Hrudayalaya, offering some support to the segment.

Sectoral Trends Reflect Changing Market Dynamics

Sector-wise performance showcased mixed sentiment as investors shifted positions amid global uncertainty.

• Nifty IT surged 1.6%, supported by renewed optimism over global tech spending
• Nifty Auto gained 1%, extending its positive streak
• Nifty Bank rose 0.6%, aided by stability in credit growth

However, pressure mounted on rate-sensitive and cyclical sectors:

• Nifty Realty plunged 3.7%
• Nifty Metal dropped 3.3%
• Nifty Media slid 2.4%

During the week, Bharti Airtel added the highest market value among major companies, followed by Reliance Industries, Infosys and Tata Consultancy Services. Meanwhile, Tata Motors Passenger Vehicles, Bajaj Finance and Bharat Electronics recorded notable erosion in their market capitalization.

FIIs Ease Selling; DIIs Provide Strong Support

A major highlight of the week was the shift in institutional flows.
Foreign Institutional Investors (FIIs) significantly reduced their selling pressure, offloading equities worth Rs 188 crore — a sharp cooling compared to previous weeks.
Meanwhile, Domestic Institutional Investors (DIIs) continued their strong buying streak, accumulating Rs 12,969.03 crore worth of equities. The robust DII support played a crucial role as the market extends gain in second week, offsetting the impact of modest FII outflows.

Rupee Hits Fresh Record Low as Currency Pressures Intensify

The Indian rupee continued to weaken sharply, marking the second straight week of losses. The domestic currency touched a new record low of 89.48 before closing at 89.40 per dollar on November 21, compared to 88.74 on November 14.

During the week, the rupee moved within a wide range of 88.42 to 89.48, reflecting heightened pressure from stronger US economic data, persistent global risk aversion and rising dollar strength. Currency depreciation remains a key concern for foreign investors and import-heavy sectors, though exporters may benefit from the trend.

Outlook: Markets Likely to Stay Volatile but Supported by Domestic Flows

As the market extends gain in second week, analysts expect volatility to persist in the near term. The trajectory will be shaped by global economic indicators, developments around the US-India trade dialogue, and evolving expectations for the Federal Reserve’s policy stance.

However, strong domestic liquidity, steady corporate fundamentals and robust DII participation are likely to act as stabilizing forces. With the rupee at record lows and global cues remaining mixed, investors are expected to adopt a selective and cautious approach in the coming sessions.

• Nifty 50
• Bank Nifty
• Sensex