The BSE Sensex fell by 277.93 points or 0.33%, closing at 84,673.02, while the NSE Nifty50 dropped 103.4 points or 0.4% to end at 25,910.05.
In the broader markets, the Nifty MidCap index fell by 0.59% and the Nifty SmallCap index declined by 1.05%, showing that selling pressure was broad-based.
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Impact on the stock market
Sector-wise performance
Sectoral performance was equally negative, with all major indices closing in the red. The Nifty Realty index took the biggest hit, down 1.91%, followed by Nifty IT, which fell by 1.1%, and Nifty Metal, which was down by 1.07%.
| Sector/Index | Performance |
| IT & BPM sector | -1.10% |
| Healthcare sector | -0.72% |
| Oil & Gas sector | -0.42% |
| Real estate sector | -1.91% |
| PSU Bank in India | -0.16% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Bharti Airtel | 2,148.20 | 1.70 |
| Axis Bank | 1,265.40 | 1.26 |
| Power Grid Corp | 276.15 | 0.95 |
| Asian Paints | 2,906.00 | 0.63 |
| Bajaj Auto | 8,987.50 | 0.47 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Tech Mahindra | 1,422.00 | -2.12 |
| Interglobe Avi | 5,748.50 | -2.12 |
| TATA Cons. Prod | 1,154.10 | -2.10 |
| Jio Financial | 305.95 | -1.94 |
| Bajaj Finserv | 2,050.20 | -1.41 |
Market aftermath: Impact on stocks
Devyani International and Sapphire Foods rise as KFC and other brands may soon arrive at railway stations
Shares of Devyani International and Sapphire Foods jumped by up to 5% on the news that Indian Railways might soon allow Premium Brand Catering Outlets like KFC, Pizza Hut, and others to operate at railway stations. Both companies operate KFC and Pizza Hut outlets in India as franchisees of Yum! Brands.
This development comes after a circular by the Ministry of Railways, which outlined plans to allow premium food brands to open outlets at stations, bringing them in line with offerings available at airports.
- Sapphire Foods rose more than 5%, trading at ₹264.
- Devyani International rose around 4%, trading at ₹147.99.
The news boosted investor sentiment, reflecting confidence in these stocks as new opportunities open up in the food retail sector.
IT stocks decline amid US rate concerns and global market weakness
Shares of Tech Mahindra, Infosys, and Wipro saw declines of up to 2% on November 18, contributing to the Nifty IT index falling for the third time in four sessions.
There were multiple reasons behind the downturn:
- Lower chances of Fed rate cut: Market expectations for a US Federal Reserve rate cut in December have dropped significantly, which impacts IT companies’ growth prospects.
- AI bubble concerns: The global concerns around the artificial intelligence (AI) sector, with SoftBank’s $5.8 billion stake sale in Nvidia, raised doubts about the AI sector’s valuation.
- US economic data: Investors were also cautious ahead of key US data, including the delayed September jobs report, which could impact future Fed decisions.
- Profit booking: After a strong run-up, investors were booking profits in IT stocks.
Top IT losers today included Tech Mahindra, which fell by 2%, while Infosys, LTI Mindtree, Coforge, Wipro, HCLTech, and Mphasis also faced losses.
Metal shares fall amid stronger dollar; Hindustan Zinc leads losses
The metal sector saw sharp declines, with stocks like Hindustan Zinc and Hindustan Copper falling by as much as 3%. The Nifty Metal index dropped 1.5% on November 18, pressured by a stronger US dollar.
- A stronger dollar makes base metals like copper and aluminum more expensive for foreign buyers, which negatively impacts metal stocks.
- Fading hopes of a Fed rate cut also contributed to the negative sentiment, as higher rates tend to strengthen the dollar further.
- Hindustan Zinc and Hindustan Copper led the declines with 3% losses.
- Steel Authority of India (SAIL) also saw a drop of over 2%.
This sector’s outlook remains cautious as global commodity prices continue to react to currency fluctuations and macroeconomic concerns.
Crude oil prices fall as US sanctions on Russian oil majors take effect
Crude oil prices traded lower on Tuesday morning, as investors digested the news that US sanctions on Russian oil majors like Rosneft and Lukoil would take effect on November 21.
- Brent oil futures were down 0.7% at $63.75, and WTI crude oil futures dropped 0.74% to $59.42.
- MCX Crude Oil futures fell 0.85% to ₹5,275 for November contracts, reflecting market concerns over reduced Russian oil supply due to the sanctions.
- Goldman Sachs projected a decline in oil prices through 2026, citing increased production and a potential surplus.
This move, along with fears of further tightening of US sanctions on Russian oil exports, added to the pressure on crude prices.
Conclusion
Tuesday’s market showed signs of caution, with declines across key sectors like IT, metals, and realty. The global macroeconomic landscape, including concerns about the US Federal Reserve’s rate decision and a stronger dollar, weighed heavily on market sentiment. However, stocks like Devyani International and Sapphire Foods bucked the trend, rising on positive news about the potential entry of premium food brands at Indian railway stations.
As investors await key US economic data this week, particularly the September jobs report, the market may remain in a cautious stance. Crude oil and metal prices are also under pressure due to global developments, making for a volatile trading environment. Stay tuned for updates as the market adjusts to these factors.
For more stock market insights, check out the StockGro blog.
