Equity indices declined on Friday, interrupting a two-day winning streak as investors took profits in the absence of new positive developments. The market sentiment was further dampened by recent U.S. jobs data that failed to clarify the Federal Reserve’s stance on rate cuts.
Vinod Nair, Head of Research at Geojit Investments, noted that a weaker manufacturing PMI reading, a depreciating rupee, and concerns over potential delays in India-U.S. trade discussions also contributed to negative market sentiment. After a day of volatile trading, the benchmark indices closed near their intraday lows, with the BSE Sensex falling by 400.76 points, or 0.47%, to settle at 85,231.92. Similarly, the Nifty 50 dropped 124 points, also a 0.47% decline, to end at 26,068.15, maintaining a position above the 26,000 mark.
Despite the negative close, markets are still close to all-time highs, indicating a trend of cautious profit-taking rather than a widespread selloff, according to Abhinav Tiwari, Research Analyst at Bonanza. Both the midcap 100 and smallcap 100 indices underperformed compared to frontline indices, each recording declines of over 1%. Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking Ltd, emphasized that a volatility index drop below 12.5 is necessary for bulls to regain control.
Metals and defense stocks faced the most significant pressure, with nearly all sectoral indices closing in the red except for FMCG. The metal and defense indices fell over 2%. The metals sector was negatively impacted after the government extended exemptions on quality control regulations for certain steel grades, raising fears of increased imports and declining domestic prices. A fire at Hindalco’s aluminum plant exacerbated the situation for metal stocks, Tiwari reported.
The Bank Nifty, which had reached new highs for four consecutive sessions, failed to make further gains and closed at 58,868, down 0.81%, reflecting profit-taking after a steady upward move, stated Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities. However, most sectoral indices still reported weekly gains, with the IT sector leading, buoyed by Infosys’ ₹18,000 crore buyback announcement.
Among the constituents of the Nifty 50, Maruti Suzuki, Tata Consumer Products, Max Healthcare, InterGlobe Aviation, and Mahindra & Mahindra emerged as notable gainers, while JSW Steel, Hindalco, Tata Steel, Bajaj Finance, and HCL Technologies were the top losers. Market breadth was weak, evidenced by 4,338 stocks traded on the BSE; only 1,278 advanced, while 2,898 declined, and 162 remained unchanged. Additionally, 87 stocks hit 52-week highs, while 225 fell to 52-week lows, reflecting widespread market strain. Ten stocks hit the upper circuit limit and seven hit the lower circuit.
In the midcap segment, IndusInd Bank, Page Industries, GMR Airports, Biocon, and SBI Cards led the gainers, while Tube Investments, Bharti Hexacom, Oberoi Realty, Steel Authority of India Ltd, and Vishal Mega Mart saw declines of 3-4%. In small-cap stocks, Five-Star Business, CreditAccess, Ramco Cements, CESC, and Narayana Hrudayala gained between 1-4%, while Hindustan Copper, HBL Engineering, Redington, Garden Reach Shipbuilders & Engineers, and BEML fell by 3-4%.
Reliance Industries attracted attention as it ceased importing Russian crude oil effective Thursday. Shares of Groww were also in focus following its Q2 results, although the stock ultimately settled flat after erasing initial gains.
In global markets, Asian indices finished significantly lower, and European markets ended in negative territory. The Hang Seng tech index recorded substantial drops, which contributed to an overall risk-off sentiment, according to analysts at Bonanza. U.S. markets also reported declines in Thursday’s session. Foreign Institutional Investors (FIIs) purchased equities worth ₹283.65 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks totaling ₹824.46 crore, as per exchange data.
On Thursday, the Sensex rose by 446.21 points or 0.52% to close at 85,632.68, reaching a 52-week high of 85,801.70. The Nifty 50 finished with a gain of 139.50 points or 0.54% at 26,192.15, having touched a 52-week high of 26,246.65.
Published on November 21, 2025
