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New Delhi: Indian markets extended their losing streak to a fifth consecutive session on Wednesday, November 13, as a mix of global factors weighed on investor sentiment. The Sensex slid by 559.39 points, or 0.7 per cent, to hit a low of 78,115.79, while the Nifty dropped 203 points, or 0.8 per cent, to an intraday low of 23,680.50. Both indexes are now over 9 per cent below their all-time highs set in September, with a total loss of more than 3 per cent just in the past five sessions.
Broader markets performed worse than the benchmarks, with both the Nifty Midcap and Nifty Smallcap indexes falling nearly 2 per cent each.
Sectoral Performance And Top Stocks
Among the Sensex pack, only five stocks managed to stay in positive territory: NTPC, ITC, Tata Motors, Titan, and HUL. Tata Steel, M&M, JSW Steel, Adani Ports, and PowerGrid were the biggest laggards. All major sectors saw declines, with Nifty Realty leading the fall, shedding 2.66 per cent, followed by Nifty Metal and Nifty Auto, which lost 2.2 per cent and 1.9 per cent, respectively. Nifty PSU Bank and Nifty Media also dropped 1.7 per cent each, while Nifty IT held relatively steady with a modest decline of 0.4 per cent.
Why Stock Market Is Falling?
Here are the primary factors driving recent market declines:
Weakening Rupee
The rupee hit a historic low of 84.40 against the dollar on Wednesday, largely due to persistent foreign outflows and a strong dollar. The depreciating currency increases import costs and may fuel inflationary pressures.
Rising Dollar Index
The dollar index climbed 1.8 per cent in November, reaching 105.98, its highest since July. This rise, spurred by Donald Trump’s return to the White House, adds pressure on emerging markets like India, as higher US bond yields draw investments away from these regions.
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Foreign Investor Selling
Foreign Portfolio Investors (FPIs) have been net sellers for the past 32 sessions, offloading Rs 364.35 crore on Tuesday alone, with total outflows for November reaching Rs 23,911 crore. In October, FPIs pulled Rs 1.14 lakh crore from Indian markets, with China’s recent stimulus measures attracting foreign investors away from India.
Concerns Over RBI Rate Cuts
Unlike other central banks that are easing rates, the Reserve Bank of India (RBI) has kept its rates steady amid rising inflation concerns. October’s retail inflation rose to 6.21 per cent, exceeding the RBI’s comfort level and dampening hopes of an imminent rate cut. High food prices, a result of an extended monsoon, along with a weakening rupee, pose challenges for the RBI as it balances inflation control with growth.
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