Closing Bell: Market Ends With Minor Cuts, Sensex & Nifty Erase Early Gains Amid Geopolitical Tensions

Indian equity markets erased early gains to end flat on November 26, as global uncertainties and profit-booking dampened investor sentiment. After a robust rally in the last two sessions, the benchmark indices struggled to maintain momentum, closing marginally lower amid mixed global cues and renewed trade tensions.

The BSE Sensex dropped 106 points, or 0.13%, to close at 80,004.06, while the Nifty 50 slipped 27 points, or 0.11%, to settle at 24,194.50. Meanwhile, the BSE Midcap index gained 14 points to 55,914, and the Nifty Bank declined 16 points to 52,192.

Global and Domestic Factors

Renewed trade tensions emerged after US President-elect Donald Trump announced tariffs on imports from China, Mexico, and Canada, sparking concerns over the impact on global trade relations. These developments prompted profit-booking at higher levels, adding pressure to Indian equities.

Geopolitical tensions also played a role, with escalating conflicts between Russia and Ukraine, and Iran's plans to expand its nuclear fuel production unnerving investors. Despite reports of a potential ceasefire agreement between Israel and Hezbollah, overall market sentiment remained subdued.

Asian markets mirrored this cautious approach, with most indices closing flat, setting the tone for Indian markets to follow suit.

The sectoral landscape presented a mixed picture, with gains in IT, FMCG, and realty offset by losses in auto, energy, and pharma stocks. The Nifty IT index reached a record high of 44,244 points, buoyed by a strong dollar index. Heavyweights such as Infosys, TCS, and Wipro ended the session with gains of over 1%.

The Nifty FMCG index rose by 1%, supported by expectations of government-led rural welfare initiatives following the BJP-led NDA's victory in the Maharashtra Assembly election. Stocks like Britannia Industries, Asian Paints, and Berger Paints saw gains of up to 2%.

Positive sentiment around political continuity in Maharashtra kept real estate stocks buoyant, with the Nifty Realty index adding 0.60% after a strong 2.21% gain in the previous session.

The Nifty Auto index dropped 1.30%, with top names like Bajaj Auto, Mahindra & Mahindra, and Tata Motors losing up to 3.2%, ahead of monthly sales data. Nifty Energy, Pharma, Infra, and Oil & Gas indices all ended in negative territory, reflecting subdued investor confidence in these segments.

Adani Group companies continued to face selling pressure after recent rating actions by agencies. Adani Enterprises and Adani Ports & SEZ were the top Nifty losers, falling 5.2% and 3.5%, respectively. In total, 29 of the 50 Nifty stocks ended in the red. Notable losers included PSU stocks such as Coal India, ONGC, and Power Grid, which shed 1-1.5%.

Despite the overall subdued tone, several stocks bucked the trend. Shriram Finance led the gains, rising 3.4%, followed by Britannia Industries, Bharat Electronics, Infosys, and Asian Paints, all of which added over 1%.

BEL and HAL gained up to 2% after JPMorgan issued a positive note on defence companies. Stocks like Bata India and Berger Paints joined the rally in the FMCG segment, gaining up to 2%. Zomato surged over 2% as its Rs 8,500 crore Qualified Institutional Placement (QIP) opened. Vodafone Idea also rallied 7% on reports of a bank guarantee waiver.

Several companies witnessed sharp gains in corporate announcements. Hitachi Energy surged 5% after its joint venture with BHEL secured a letter of intent for a Power Grid project. Ashoka Buildcon climbed 3% on receiving a Rs 1,391 crore project award from NHAI. Angel One soared 4% after SEBI approved its mutual fund business proposal. LT Foods advanced over 2% on its UAE investment plans of Rs 415 crore.

The market breadth slightly favoured advances, with the advance-decline ratio standing at 1:1. A total of 2,179 stocks advanced, 1,580 declined, and 105 remained unchanged.

Meanwhile, the Indian Rupee weakened against the US Dollar, closing 5 paise lower at 84.33 compared to the previous close of 84.28.