Indian equity markets ended lower on November 24, extending their corrective phase as FII selling, profit booking, and the rupee’s weakness pulled benchmarks down from the day’s highs. The decline was broad-based, with most sectors slipping into the red.

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FII Selling Turns Sentiment Negative Profit Booking for Second Straight Day Rupee Near Record Low Adds Pressure Investors Await Market Breakout

The Sensex closed 330 points lower at 84,900.71, while the Nifty 50 ended the session down 108 points at 25,959.50, slipping below the key 26,000 mark. The Sensex fell nearly 573 points from its intraday high, signalling strong intraday selling pressure.

FII Selling Turns Sentiment Negative

A major trigger behind the market’s decline was heavy foreign institutional investor (FII) selling. On November 21, FIIs sold equities worth ₹1,766 crore, creating a spillover effect that continued into November 24.

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “Previous attempts by Nifty and Sensex to break the September 2024 highs failed as FII selling intensified and the expected US–India trade deal did not materialise.”

Profit Booking for Second Straight Day

Markets also witnessed profit booking for the second consecutive session, coming after eight out of nine sessions of gains. The absence of major domestic triggers ahead of GDP data has made equities more sensitive to global cues.

Pravesh Gour of Swastika Investmart said, “Markets will remain sensitive to U.S. inflation data, comments on the rate trajectory, dollar index, and foreign flows.”

The Nifty IT index, which was up nearly 2% earlier in the day, gave up most of its gains to close just 0.36% higher. The Bank Nifty, too, slipped into the red after an early rise.

Rupee Near Record Low Adds Pressure

The Indian rupee’s fall to a record low of 89.49 against the dollar further weighed on sentiment. Although the currency saw some recovery following likely intervention by the Reserve Bank of India (RBI), it remains close to the psychological 90-mark.

RBI Governor Sanjay Malhotra attributed the weakness to higher dollar demand, stating that India’s foreign reserves offer “ample protection” for the rupee.

Analysts expect near-term pressure to continue. Jateen Trivedi of LKP Securities noted that “near-term weakness can extend further, with the rupee likely to trade in the 89.20–90.00 range.”

Experts also highlighted that the currency’s multi-month decline is rooted in a rising trade deficit and earlier FII outflows, though recent weeks have shown some stabilisation.

Amit Pabari of CR Forex said, “With last week’s decisive break above 89, the pair now looks set to establish itself within the 88.90–90.20 band.”

Investors Await Market Breakout

Technical analysts believe the market is in a pause phase after a strong rally. Choice Broking noted that the index retested a cup-and-handle pattern before seeing a correction from higher levels.

Key levels to watch include:

Support at 26,000 and 25,900
Breakdown below 25,850 may lead to deeper weakness
Buy-on-dips approach remains favourable

SAMCO Securities called 25,900 a “crucial make-or-break level,” while Axis Securities cited 26,100 as the “trend-deciding” level for the day.

Top Losers

Bharat Electronics Ltd. (BEL) was the top loser on the Nifty 50 after sentiment around defence stocks weakened due to a Tejas fighter jet crash at the Dubai Air Show. JSW Steel and Max Healthcare were also among the prominent laggards.

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