Nifty, Sensex fall at open as global weakness, Bihar vote jitters drag sentiment

Sensex and Nifty 50 snapped a four day winning streak on November 14.

Dalal Street's benchmark indices Nifty 50 and Sensex opened with losses on Friday, November 14, following weak global cues as Wall Street and Asian markets saw a risk-off sentiment take hold. Further, the markets are closely watching the Bihar assembly elections for cues, which could sway sentiment despite exit polls pointing to a comfortable win for the ruling National Democratic Alliance.

At 09:15 a.m., the Sensex was down 180.93 points or 0.21 percent at 84,297.74, and the Nifty was down 60.15 points or 0.23 percent at 25,819.00.

Sectoral trends were mixed in early trade, with weakness dominating most major indices. Nifty IT led the decline with a sharp drop, followed by FMCG, Realty, Metal and Auto, all slipping into the red. Private Bank, Healthcare and Consumer Durables indices also saw mild pressure. On the positive side, Nifty Oil and Gas, PSU Bank and Pharma managed to post modest gains, indicating selective buying interest even as broader sentiment remained cautious.

According to brokerages, any deviation from the projected NDA victory could trigger a five to seven percent slide in the Nifty and Sensex. InCred Research noted that razor-thin vote-share differences between the NDA and the Mahagathbandhan, along with small shifts among EBC and young voters, could influence more than 100 marginal seats.

"The market will be focused on the Bihar election outcome today. But the market reaction to the election results will be only temporary, whatever the results might be. The medium to long-term trend of the market will be dictated by fundamentals, particularly the earnings growth. On this front there is room for optimism as indicated by prospects of robust GDP growth and improving earnings growth," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

Further, the overnight sell-off from Wall Street will also be weighing on sentiment. The U.S. government reopened after a record 43-day shutdown that had worried investors and disrupted the flow of economic data. The weakness on Wall Street may also have reflected uncertainty about whether key U.S. economic indicators would be released after the most extended government shutdown in U.S. history.

US markets slumped, with a sharp tech-led selloff dragging the Nasdaq down 2.3 percent. The S&P 500 fell 1.7 percent, while the Dow lost 800 points, or 1.7 percent, after hitting record highs earlier in the week. High-valuation tech and AI stocks were hit hardest, with Nvidia, Broadcom and Alphabet all declining.

On the technical front, despite witnessing a sharp rejection near the 26,000 mark, highlighting it as a key overhead resistance, Nifty continues to maintain its footing above the crucial 25,800–25,700 zone, supported by a bullish gap that continues to provide a strong cushion for buyers.

On the higher side, immediate resistance is seen around the 26,000 level. A convincing breakout above this threshold could trigger fresh momentum-driven buying and extend the rally further, said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

Conversely, a breach below 25,750 may invite renewed selling pressure and spark caution among market participants.

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