Stock market news: After a two-day surge, the benchmark indices Sensex and Nifty 50 ended lower on Friday, primarily driven by poor global trends and diminishing expectations for a rate cut by the US Federal Reserve in December.
The Sensex fell by 400.76 points, or 0.47%, ending at 85,231.92. At one point during the day, it dropped by 444.84 points, or 0.51%, to reach 85,187.84. The Nifty 50 decreased by 124 points, or 0.47%, to close at 26,068.15, following a rally of over 1%, or 282 points, that had brought it above 26,000 in the previous two trading sessions.
The India VIX rose by 13%, indicating heightened volatility and uncertainty among traders.
Experts noted that despite the market’s negative closing, it remains close to all-time highs, suggesting that profit-taking is taking place cautiously rather than a widespread selloff.
According to analysts, this temporary market stagnation near peak levels reflects a sense of caution among investors amid external uncertainties and specific sector challenges, with global developments and domestic earnings being monitored as crucial factors influencing the market.
Analysts pointed out that stronger-than-expected US non-farm payroll figures have lowered the chances of a December rate cut by the US Federal Reserve. Additionally, concerns about a potential bubble in AI-related stocks have further affected investor mood across global markets.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Defying the global trend Nifty 50 extended gains over second consecutive week and settled at 26,068, up 0.6%. Meanwhile, broader market underperformed as smallcap declined >2%. Sectorally, IT continued to bounce back coupled with BFSI and auto, meanwhile realty, metal underperformed. The weekly price action formed a bull candle carrying higher high-low, indicating continuation of upward momentum.
Over past two-week US and European markets corrected ~5%, while Nikkie has corrected more than 8%. In the meantime, defying the global trend, Nifty 50 has rallied 3.5% over past 2 weeks underscoring relative outperformance.
Going ahead, a decisive close and a follow through strength above All Time high of ~26,300 would open the door for revised target of 26,800 in the coming month. We believe, sustainability above 26,300 would revive market sentiment resulting into broad based participation. Hence, focus should be on accumulating quality stocks backed by strong Q2 earnings, especially from broader market space as Nifty small cap index has approached key support threshold of 200 days EMA. Meanwhile, strong support for the Nifty 50 is placed at 25,600 as it is 61.8% retracement of Sept-Oct rally (24,588-26,104) coincided with 50 days EMA.
Following observations makes us reiterate our positive stance:
- The current leg of up move is supported by Bank Nifty and followed by Midcap index which has hit a fresh all-time high this week, while Nifty is just 0.5% away from its peak. However, Small cap index is still trading below 10% from its all-time high. We expect, supportive effort to emerge from 200 days EMA and catch-up activity to gradually pan out in small cap space in coming weeks.
- Strong Q2 earnings and improving macro indicators bodes well for durability of ongoing up move.
Key Monitorable:
- US and India Tarde Deal: Tracking nearing closure news of the US and India trade deal has kept Indian market upbeat. The favourable outcome could accelerate the positive momentum in the marketand pave the way for return of FII’s in the Indian markets.
- GDP data: US & India
- Brent Crude Oil: dropped ~3% during the week. Further cool off in Brent crude oil bodes well for domestic market
- Indian Rupee: Indian Rupee has depreciated and recorded new low of 89.50. Further decline in rupee could temper market sentiment
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying Ltd.
Buy Adani Ports shares in the range of ₹1,454-1,482. He has Adani Ports share price target of ₹1,675 with a stop loss of ₹1,377.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 21/11/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.