The stock market’s downward spiral extended into its sixth consecutive trading session today, marking a dismal end to the week’s performance. Pressured by foreign institutional investor (FII) sell-offs, lackluster quarterly earnings, and rising inflation, the market’s key indices closed in the red, reflecting growing investor apprehensions.

Market Closing Figures

• Sensex: The BSE Sensex dropped 110.64 points (0.14%) to settle at 77,580.31.
• Nifty: Nifty followed suit, closing 26.35 points (0.11%) lower at 23,532.70.

Nifty’s persistent decline over the last six days is particularly notable, signaling bearish sentiment in the market.

Top Gainers and Losers

The trading session witnessed a mixed bag of performances among individual stocks:

Top Losers:

Shares of Hindustan Unilever, NTPC, Nestle, IndusInd Bank, Power Grid, Adani Ports, Tata Motors, and Bajaj Finserv ended in the red.

Top Gainers:

Conversely, Reliance Industries, Kotak Mahindra Bank, Tech Mahindra, Mahindra & Mahindra, and HDFC Bank recorded gains, providing a glimmer of hope amidst the overall decline.

Inflation Woes: A Growing Concern

Recent government data has amplified concerns over rising inflation:

1. Wholesale Inflation: Surged to a four-month high of 2.36% in October.
2. Retail Inflation: Breached the Reserve Bank of India’s (RBI) comfort zone, hitting a 14-month high of 6.21%.

The spike, largely driven by escalating food prices, casts doubt on any potential repo rate cuts in December. This has further dampened investor confidence, with fears of tighter monetary policies looming large.

Global Market Sentiments

The global financial landscape exhibited mixed trends:

• Asian Markets: Tokyo, Shanghai, and Hong Kong closed lower, while Seoul ended positively.
• European Markets: Displayed an upward trend during trading hours.
• US Markets: Closed on a mixed note in their latest session.

Meanwhile, Brent crude oil, the global benchmark, experienced a marginal dip of 0.06%, trading at USD 72.24 per barrel.

FII Selling vs. DII Buying

FIIs continued to offload equities, selling shares worth ₹2,502.58 crore on Wednesday. However, this was counterbalanced by Domestic Institutional Investors (DIIs), who showed confidence by purchasing shares worth ₹6,145.24 crore, indicating a divergence in market sentiment between domestic and foreign participants.

Rupee Hits a New Low

The Indian rupee also faced headwinds, closing 4 paise lower at ₹84.43 per dollar, marking a new all-time low:

• Opening Value: ₹84.40
• Intraday Range: ₹84.39 – ₹84.43

The limited movement of the rupee reflects ongoing volatility, further exacerbating economic concerns.

Looking Ahead

The Indian stock market’s current trajectory underscores a confluence of domestic and global pressures. With inflation on the rise and FIIs retreating, the road to recovery remains uncertain. Eyes will now turn to macroeconomic policies, global market trends, and corporate earnings to determine the path forward.

For investors, caution remains the watchword as markets navigate through these turbulent times.