Sensex, Nifty end in red as FII selling offsets IT gains; RVNL tanks 6%

The S&P BSE Sensex dropped 55.47 points to settle at 79,486.32, while the NSE Nifty50 fell 89.95 points to 24,109.40.

In Short

• Sensex and Nifty end lower, marking fifth weekly loss
• FII outflows of $13 billion weigh on investor sentiment
• RVNL and Ircon International shares fell sharply during the session

Benchmark stock market indices closed lower on Friday, marking their fifth weekly loss in six weeks. The S&P BSE Sensex dropped 55.47 points to settle at 79,486.32, while the NSE Nifty50 fell 89.95 points to 24,109.40.

Investor sentiment remained subdued, weighed down by persistent foreign institutional investor (FII) selling and underwhelming Q2 results.

Foreign investors continued to pull back, with net outflows from 29 consecutive sessions between September 27 and November 8, totalling around $13 billion. A large part of this withdrawal was attributed to increasing interest in China, driven by Beijing's stimulus measures and the relative attractiveness of Chinese market valuations.

The trend of foreign selling has kept the Indian market on edge, contributing to a cautious mood among investors.

The IT sector was one of the few bright spots, as NIFTY IT posted a 4% gain—the sector’s strongest performance in over two months. The Fed’s decision to cut interest rates by a quarter-point, along with a positive outlook on economic growth and inflation, helped lift IT stocks. Additionally, analysts pointed out that US President Donald Trump's election win could lead to tax cuts that would benefit IT firms, boosting their corporate spending.

Despite the IT sector’s gains, overall market breadth remained weak, with 11 of the 13 major sectors logging losses for the week. Banking, telecom, metal, oil & gas, and realty stocks saw selective selling, while the recovery in global indices failed to uplift local sentiment, primarily due to ongoing FII outflows.

Meanwhile, RVNL and Ircon International shares fell sharply during the session due to weak Q2 results. Trent's share price also dropped over 3%, continuing its decline for the second consecutive day.

Commenting on the market movement, Prashanth Tapse, Senior VP of Research at Mehta Equities, noted, “After volatile early trading, the market stabilised in a narrow range and ended slightly lower, as selective selling in several sectors weighed down indices. Despite a recovery in global markets, Indian markets continue to struggle under the pressure of FII outflows.”

Vinod Nair, Head of Research at Geojit Financial Services, added, “The market is in consolidation mode as investor caution prevails, driven by disappointing earnings and persistent FII outflows. While the U.S. Federal Reserve’s rate cuts aim to stimulate the economy, Indian inflationary pressures and a strengthening dollar are likely to keep the Reserve Bank of India on hold in the near-term.”

As a result, the market remains under pressure, with ongoing global uncertainties and the continued outflow of foreign funds keeping investors on edge.