Indian equity markets fell today on November 28, with benchmark indices BSE Sensex and NSE Nifty reversing early gains. Though the indices began on a positive note, regarding the state election results, the downturn was witnessed across the board, especially in the IT and automobile sectors.
At 10:45 am, the BSE Sensex was down 557 points or 0.7% at 79,677, while the NSE Nifty slipped 151 points to 24,124. The overall market sentiment remained bullish with 2086 stocks ending higher, 1152 falling and 105 remaining flat.
Sectoral Performance
IT shares were worst hit as the sectoral index went down by 1.7%. Market leaders, including Infosys and Tech Mahindra, were down by 2.3%, along with TCS and HCL Tech, falling in the range of 1% to 2%.
Similarly, selling pressure was witnessed in the automobile share counter as Mahindra & Mahindra went down by 2.4%, Maruti Suzuki by 1% and Hyundai Motor India by 1%.
Key Gainers
While the broader market trend was weak, shares in Adani Enterprises rose by almost 4%, enhancing the previous day’s 11.5% rally. About 1% has been contributed by Adani Ports and SEZ. The PSU stocks like Coal India, BPCL, and SBI were also on the list of gainers.
Earlier, today, HDFC Bank recorded a market capitalization of Rs 14 lakh crore but marginally slipped into the negative territory.
Market Context
Recently the Nifty has corrected 8% from its September levels hence present reasons to believe that valuation has now stabilized. What has in fact helped this index is that its P/E ratio has now come down to 21x from the high of 25.8 that was seen in October which makes it all the more attractive for investors.
The IT sector exhibited strength earlier this month based on order inflows and positive sentiment on BFSI and AI-related deals. However, today, there are sell-offs showing that sectoral fluctuations occur even in an overall market correction.
The uncertainty in the market continues to persist with FPI inflows being set to determine the fortune of the indices in the next sessions.
