Indian markets extend losing streak as banks, IT drag; global tech rally builds on Fed rate-cut hopes

Market Today

Indian equities extended their losing streak for a third consecutive session on November 25, dragged down by banking and information technology stocks. Sentiment remained fragile as investors turned cautious ahead of key macroeconomic data and global cues. By the closing bell, the Sensex was down 313.70 points or 0.37 percent at 84,587.01, and the Nifty was down 74.70 points or 0.29 percent at 25,884.80.

Sectoral trends reflected the uneven mood in the market. Nifty Media emerged as the worst performer, falling 0.8 percent, followed by Nifty IT and Nifty Consumer Durables, each shedding 0.5 percent. On the other hand, pockets of resilience were visible in realty and public-sector banking counters. Nifty Realty advanced 1.6 percent, making it the day’s top gainer, while Nifty PSU Bank rose 1.3 percent and Nifty Metal added 0.5 percent.

Investors are now looking ahead to India’s GDP data, scheduled for release on Friday, which is expected to set the tone for near-term market direction.

Vinod Nair, Head of Research at Geojit Investments, said the domestic market saw sharp volatility on expiry day, driven by a weakening INR and persistent FII selling. He added that uncertainty around a possible rate cut in the upcoming FOMC meeting and developments on the Indo-US trade deal kept investors on edge, despite some improving signals. According to Nair, selling pressure remains visible near the 26,000 mark on the Nifty, though he believes the downside is limited given strong domestic fundamentals, including a robust earnings outlook for the second half of the fiscal year. He noted that PSU banks and real estate stocks stood out, supported by a revival in home-loan demand and increasing market share for state-run lenders.

Globally, equities edged higher on Tuesday after Federal Reserve officials reinforced expectations of a December rate cut, prompting investors to rotate back into technology stocks despite lingering concerns about stretched valuations. Confidence in a potential cut grew after Fed Governor Christopher Waller suggested that the softening U.S. labour market could justify another quarter-point reduction. His remarks came shortly after New York Fed President John Williams indicated that a December cut remained on the table.

Investors will also parse delayed data on retail sales, wholesale inflation, home prices and consumer confidence later in the day, though analysts believe these releases are unlikely to significantly alter expectations around the Fed’s next move.

In Asia, Japanese markets were overshadowed by mounting geopolitical tension between Tokyo and Beijing. The strain stems from Japanese Prime Minister Sanae Takaichi’s recent remark that a Chinese attack on Taiwan could potentially trigger a Japanese military response. Takaichi spoke with President Donald Trump on Tuesday, following his conversation with Chinese President Xi Jinping a day earlier. She said Trump outlined his view of U.S.-China relations during the call. Trump also announced plans to visit Beijing in April, a development widely seen as a further step toward stabilising ties between Washington and Beijing after years of trade friction.

U.S. stock and bond markets will be closed on Thursday for the Thanksgiving holiday and will operate on a shortened schedule on Friday.