Why Did Indian Stock Markets End Lower Amid Weak Global Cues?
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Synopsis
On November 4, the Indian stock markets faced a notable decline, influenced by renewed selling in key sectors like IT and metals. With analysts pointing to weak global cues and profit-booking, the overall sentiment remains cautious as investors brace for a holiday-shortened week.
Key Takeaways
- Indian stock markets closed lower due to selling pressure in IT and metal sectors.
- Sensex dropped by 519.34 points, while Nifty fell by 165.70 points.
- Weak global cues influenced market sentiment negatively.
- Immediate support levels for Nifty are 25,570 and 25,500.
- Broader markets also reflected weakness with declines in midcap and smallcap indices.
Mumbai, Nov 4 (NationPress) The Indian stock markets faced a decline on Tuesday, as fresh selling pressure impacted information technology (IT) and metal stocks during the latter part of the trading session.
Initially starting on a positive note, the Sensex lost its early gains and concluded the day down by 519.34 points, or 0.62 percent, settling at 83,459.15.
During the intra-day trading, the index had momentarily increased by 0.11 percent before turning negative.
The Nifty index also dropped 165.70 points, or 0.64 percent, to finish at 25,597.65.
Market analysts observed, “The Nifty continued its pattern of lower highs and lower lows, dipping beneath the 25,600 threshold. Momentum indicators and oscillators have signaled a sell crossover on the daily chart, hinting that short-term weakness may continue.”
They added, “Immediate support is observed at the 21-DMA near 25,570, followed by psychological support at the 25,500 levels. Conversely, a decisive move above 25,800 could counter the bearish outlook and pave the way for new upward potential.”
Among the Sensex constituents, Power Grid, Eternal, Tata Motors Passenger Vehicles, Tata Steel, and Maruti Suzuki were the most significant losers.
Conversely, Titan, Bharti Airtel, Bajaj Finance, Mahindra & Mahindra, and State Bank of India managed to post gains.
The broader markets also reflected weakness akin to the benchmark indices. The Nifty Midcap 100 index declined by 0.42 percent, while the Nifty SmallCap 100 index fell by 0.82 percent.
In sectoral performance, the Nifty Consumer Durables was the sole index to finish in the green, climbing 0.39 percent.
The Nifty Metal index experienced the steepest drop, plummeting 1.44 percent, followed by Auto, which fell 0.86 percent, and IT, which decreased by 0.06 percent.
Analysts indicated that weak global cues and profit-booking in select heavyweight stocks negatively impacted investor sentiment, resulting in a broad market decline.
Industry experts noted, “The Indian equity markets closed lower, influenced by weak global signals and widespread selling, especially in the IT, metal, and power sectors. Investor sentiment remained cautious ahead of the upcoming holiday-shortened week.”
Point of View
It is crucial to remain informed and guide our audience through the complexities of the market. The recent downturn in the Indian stock market underscores the importance of staying vigilant amidst fluctuating global cues. We must maintain a clear perspective, focusing on the data and providing our readers with trustworthy insights.
NationPress
05/11/2025
Frequently Asked Questions
What caused the decline in Indian stock markets?
The decline was primarily driven by renewed selling pressure in the IT and metal sectors, compounded by weak global cues and profit-booking among investors.
How much did the Sensex and Nifty drop?
The Sensex fell by 519.34 points, or 0.62 percent, while the Nifty decreased by 165.70 points, or 0.64 percent.
What sectors performed poorly?
The IT and metal sectors experienced significant declines, with the Nifty Metal index losing 1.44 percent.
Is there any support level for Nifty?
Immediate support for Nifty is observed at the 21-DMA near 25,570, followed by psychological support at the 25,500 levels.
What can investors expect moving forward?
Investors should watch for a potential rebound if the Nifty moves decisively above the 25,800 mark, which could signal a shift in market sentiment.
