Sensex falls over 200 points, Nifty slips 43 points; auto and energy stocks weigh on markets

Indian equity benchmarks reversed course on November 26, ending a two-day winning streak amid weakness in auto and energy stocks. At noon, the Sensex fell 147.14 points, or 0.18 per cent, to 79,962.71, while the Nifty declined 39.40 points, or 0.16 per cent, to 24,182.50. Advances outpaced declines with 1,995 shares rising, 1,290 falling, and 115 unchanged.

Market experts attributed the slump to a lack of positive triggers. “The two-day rally is unlikely to sustain as earnings concerns remain major headwinds,” said V.K. Vijaykumar, Chief Investment Strategist at Geojit Financial Services. “The impact of short covering and the Maharashtra election results will be temporary. Too much shouldn’t be read into the Rs 9,949 crore FII buying yesterday, driven by MSCI rebalancing with higher weightage to HDFC Bank,” he added.

Sectoral performance and stock action

The Nifty Auto, Energy, and Pharma indices were among the biggest laggards, with key stocks like M&M, Maruti Suzuki, Tata Motors, and Bajaj Auto trading lower. On the flip side, Nifty IT, FMCG, and Realty indices gained around 1 per cent each. Realty stocks continued their upward trajectory, supported by a surge in residential sales during October, driven by festive demand, as noted by Jefferies.

In specific stock movements:

• Adani Group stocks fell two to three per cent after Fitch placed some bonds on a negative watch following bribery charges against executives.

• Swiggy surged nearly 4 per cent after UBS initiated coverage with a ‘buy’ rating and a target price of Rs 515, predicting a 27 per cent upside.

• Vodafone Idea jumped 15 per cent on reports of a cabinet-approved waiver of bank guarantees for spectrum purchased before 2022.

• Emcure Pharmaceuticals rallied 10 per cent after Kotak Securities upgraded it to a ‘buy’, citing growth potential.

Broader market and outlook

Midcap and smallcap indices outperformed the benchmarks, gaining 0.3 and 0.5 per cent, respectively. Since the beginning of the year, these indices have risen 21 per cent, compared to the Nifty’s 11 per cent gain.

Technical analysts suggest the Nifty may find support at 24,150, with resistance at 24,300 and 24,550. Bank Nifty is expected to hold support at 52,000 while facing resistance at 52,400.

Global cues will also play a role, particularly in U.S. fiscal policies. “Scott Bessent’s appointment as Treasury Secretary could favour emerging markets by easing bond yields,” noted Vijaykumar.

With no significant positive triggers in sight, the markets may see cautious trading in the coming sessions.