Midday Market: Nifty down 81 points, Sensex drops 209 points as losses extend; broader markets slip nearly 1%

Indian equity benchmarks Nifty and Sensex slipped into the red on November 8, marking their second consecutive session of losses. This downturn comes despite supportive global cues, including the U.S. Federal Reserve's second straight interest rate cut. Fed Chair Jerome Powell provided an optimistic economic outlook, citing progress in controlling inflation but withheld further guidance due to ongoing uncertainty.

Market snapshot
At noon, the Sensex fell by 209 points or 0.26 percent to 79,332.73, while the Nifty was down by 81.3 points or 0.34 percent at 24,118. Broader market indices, particularly mid- and small-cap stocks, lagged behind, dipping nearly one percent. This underperformance came as investors showed caution over valuations, despite these indices outperforming the Nifty and Sensex with a year-to-date gain of 25 percent compared to Nifty’s 13 percent.

The volatility index (VIX) saw a slight relief, easing over one per cent to dip below the 15 mark.

Sectoral trends and stock movements
Nifty IT was the only sector showing strength, buoyed by gains in major tech stocks like Infosys, Tech Mahindra, and Wipro. On the flip side, Nifty Energy, PSU Banks, Realty, and Pharma sectors fell by up to 1.5 percent. Notable laggards included Coal India, Trent, and BPCL on the Nifty, while Sensex heavyweights like Asian Paints, Tata Motors, and ICICI Bank also faced selling pressure.

Among specific movers, Waaree Energies declined 10 per cent over concerns about reduced renewable energy exports to the U.S. following Donald Trump’s election win. Conversely, IHCL shares jumped more than four per cent on strong earnings, reporting a 232 per cent rise in consolidated net profit for Q2 FY25.

Expert insights
V.K. Vijayakumar of Geojit Financial Services attributed the dip in Indian markets to continued foreign institutional investor (FII) selling. FIIs have been net sellers since early November, unloading Rs 16,000 crore in the cash market so far. In October, they offloaded over Rs one lakh crore. Analysts suggest that if Q3 earnings show improvement, FIIs could ease their selling pressure, potentially stabilizing the market. 

While global cues remain favourable with optimism around the Fed’s policy shift, Indian markets are grappling with valuation concerns and tepid Q2 earnings growth. Experts recommend investors rotate some funds from mid-and small-cap stocks into quality large-caps to navigate the current volatility effectively.