The BSE Sensex closed lower by 836.34 points, a decline of 1.04%, settling at 79,541.79. Meanwhile, the NSE Nifty also lost ground, dropping 284.67 points, or 1.16%, to finish the day at 24,199.35.
This pullback comes as investors brace for a critical announcement from the US Federal Reserve on interest rates, which will be the first from Fed Chair Jerome Powell after reports of Donald Trump’s recent presidential victory.
In the mid and small-cap space, the Nifty Midcap100 and Nifty Smallcap100 indices also closed lower, down by 0.43% and 0.75% respectively. However, there was some stability in the PSU Bank index, which ended the day flat despite the turbulence.
Impact on the stock market
It was a tough day for sectoral indices across the board. The Nifty Metal index was the top loser, falling by 2.73%, dragged down by stocks like Hindalco and Grasim, both of which saw significant sell-offs. Additionally, sectors like Auto, Pharma, Realty, and Healthcare saw declines of over 1% each, signalling caution in the broader markets.
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| Sector/Index | Performance |
| IT & BPM sector | -0.68% |
| Healthcare sector | -0.87% |
| Oil & Gas sector | -0.68% |
| Real estate sector | -1.43% |
| PSU Bank in India | 0.00% |
Top gainers today
| Company | Price | Change % |
| Apollo Hospital Share Price | 7,424.85 | 6.55 |
| SBI Share Price | 859.60 | 0.56 |
| HDFC Life Share Price | 711.70 | 0.42 |
| TCS Share Price | 4,150.90 | 0.27 |
| Larsen Share Price | 3,646.55 | 0.03 |
Top losers today
| Hindalco Share Price | 648.10 | -8.49 |
| Trent Share Price | 6,505.50 | -6.47 |
| Shriram Finance Share Price | 3,070.15 | -3.66 |
| Grasim Share Price | 2,562.70 | -3.15 |
| Tech Mahindra Share Price | 1,651.00 | -2.51 |
Market aftermath: Impact on stocks
Shakti Pumps: Surges on PM-KUSUM Order Win
Amid the market’s broader decline, Shakti Pumps was one of the few bright spots, hitting a 5% upper circuit and closing at ₹4,822.55. This gain followed news of the company winning a ₹116.4 crore contract under the PM-KUSUM scheme to supply, install, and commission 3,174 solar water pumping systems in Haryana.
This order win solidifies Shakti Pumps’ impressive track record in 2024, with its share price skyrocketing 368% year-to-date, far outpacing Nifty 50’s modest 11% gain.
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Chambal Fertilisers: Positive Q2 Results Drive 5.5% Stock Jump
Chambal Fertilisers and Chemicals saw a significant price surge, with shares climbing by 5.5% to ₹530.85. This rally came on the back of strong Q2 results, where the company’s net profit soared 41% year-over-year, reaching ₹536.4 crore despite a dip in quarterly revenue.
The uptick in profit was attributed to a boost in operational efficiency, which resonated well with investors, driving heavy trading volumes. Over 75 lakh shares changed hands, notably higher than the one-month average.
Mahindra & Mahindra: SUV Sales Boost Q2 Earnings
Mahindra & Mahindra (M&M) managed to reverse its early losses following the announcement of strong Q2 earnings. The auto and farm equipment giant reported a 35% rise in consolidated net profit to ₹3,171 crore for Q2 FY25, buoyed by strong SUV sales and gains in its automotive and services segments.
This performance led the stock to recover losses and end in the green at ₹2,939, up 0.15% from its previous close.
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Crude Oil: Reacting to US Election Results
The international crude oil market remained in focus as well, particularly after Donald Trump’s victory in the US presidential election. Market analysts speculate that a Trump-led administration could drive economic growth in the US, potentially boosting demand for crude oil.
Brent oil futures were trading at $75.44 per barrel, up 0.69%, while WTI crude futures were at $72.14, rising 0.63%. This uptick also impacted Indian markets, with November crude oil futures on MCX trading at ₹6,096, up 0.35%.
Trump’s potential foreign policy shifts, particularly with Iran and Venezuela, add an extra layer of complexity. If he reintroduces sanctions against these oil-rich countries, it could reduce global oil supply, impacting prices further. Meanwhile, analysts also speculate on how Trump’s policies could affect China, a major oil consumer, which could shape global demand dynamics.
Conclusion
Today’s market dip, driven by global uncertainties and the anticipation of US Federal Reserve policies, reminded investors of the interconnected nature of economies and the volatility they bring to financial markets.
While heavyweights like Shakti Pumps, Chambal Fertilisers, and Mahindra & Mahindra offered some respite with strong performance and promising prospects, sectoral pressures weighed heavily. With eyes on international developments, the coming days may reveal if Indian markets can regain lost ground or if caution will continue to drive market sentiment.
For more stock market insights, check out the StockGro blog.
