Closing Bell: Market Ends Deeply In Red; Sensex & Nifty Fall 1.5% Each, Reliance & Infosys Major Drag

Indian equity markets faced a sharp decline on Thursday, November 28, as investors grappled with concerns over potential delays in US Federal Reserve rate cuts and geopolitical uncertainties tied to President-elect Donald Trump's proposed tariff policies. The Sensex shed a massive 1,190 points, closing at 79,044, while the Nifty slumped 361 points to end below the psychological 24,000 mark at 23,914. The broader market, however, showed relative resilience, with the Nifty Midcap 100 and Nifty Smallcap 100 managing to close flat.

Major contributors to the market's fall included IT giants and financial heavyweights such as Infosys, Reliance Industries, and HDFC Bank. The IT sector bore the brunt of the sell-off, while auto stocks also added to the pressure. Among Nifty's 50 constituents, 46 stocks ended in the red, reflecting the widespread negative sentiment. Top losers included SBI Life, Infosys, M&M, Bajaj Finance, and HDFC Life.

Insurance stocks were particularly hit hard after reports suggested that the Insurance Regulatory and Development Authority of India (IRDAI) might impose caps on business sourced from parent banks, dampening investor confidence in the sector.

Except for PSU Bank and Media, all sectoral indices ended in the red. The IT and Auto indices emerged as the worst performers, mirroring global cues and subdued domestic growth expectations. PSU Banks, on the other hand, saw a marginal uptick, buoyed by positive developments such as the ICRA rating upgrade for Indian Overseas Bank (IOB) and NBCC's MoU with HUDCO for a Rs 600 crore project.

Adani Group stocks provided some support to the indices but were unable to prevent the overall decline. Adani Enterprises emerged as the top Nifty gainer, climbing more than 1%, while Adani Total recorded a significant 16% jump. However, Adani Ports ended the day down by 3%, reflecting mixed investor sentiment within the conglomerate.

Several stocks saw notable action during the day. Ola Electric continued its upward momentum for a second straight session, gaining nearly 6%. Paytm surged to a 52-week high, boosted by a positive brokerage note from UBS. IOB gained 3% after ICRA upgraded its non-convertible securities rating to positive.

Aster DM Healthcare added 2% in the last hour of trade amid reports of an imminent deal with CARE Hospitals. KEC International rose 3% after securing a Rs 1,704 crore order from Power Grid Corporation. Ashoka Buildcon edged up 2% on news of a Rs 193 crore EPC project win in Madhya Pradesh.

On the flip side, Amber Enterprises tumbled 7% following a downgrade by Goldman Sachs to "neutral," reflecting the volatility in the broader market.

Despite the downturn in benchmark indices, the broader market displayed relative stability. The midcap index ended marginally higher by 28 points at 56,301, indicating selective buying in quality stocks. However, with global uncertainties and domestic sectoral challenges, market participants are likely to remain cautious in the near term.

The market's sell-off comes amid easing expectations for a Fed rate cut in December, driven by strong US economic data such as GDP growth and Personal Consumption Expenditures (PCE) figures. Coupled with concerns over global trade disruptions from Trump's proposed tariffs, these factors have weighed heavily on investor sentiment.

Meanwhile, the resilience of midcap and smallcap indices hints at selective optimism, supported by positive developments like strategic wins and upgraded outlooks for specific companies. With the broader market relatively stable, analysts believe any significant reversal in largecap indices will depend on clarity regarding global and domestic macroeconomic factors.