Equity markets fall in early trade after six-day rally

By Admin

18 Nov, 2025

Indian equity markets opened on a weaker note on Tuesday, pausing after a strong six-day rally as global cues turned soft and Asian markets traded sharply lower. The downturn reflected cautious investor sentiment amid volatility ahead of the weekly F&O expiry and lingering concerns in the international economic landscape.

Weak Global Cues Weigh on Sentiment

Asian markets opened deep in the red, exerting pressure on domestic indices. South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index were all trading sharply lower, signaling risk-off sentiment across the region. Meanwhile, U.S. markets also closed in negative territory on Monday (November 17, 2025), adding to the global uncertainty.

Sensex and Nifty Retreat in Early Trade

The 30-share BSE Sensex slipped 292.95 points to 84,658 in early trade, while the 50-share NSE Nifty fell 83.3 points to 25,930.15. This decline comes just a day after markets hit fresh highs, extending a six-day winning streak.

On Monday (November 17, 2025), the Sensex had rallied 388.17 points, or 0.46%, to close at 84,950.95, while the Nifty gained 103.40 points, or 0.40%, to settle at 26,013.45.

Top Laggards and Gainers

Several major Sensex constituents were among the early losers. Tata Steel, Bajaj Finance, Bajaj Finserv, Tech Mahindra, Kotak Mahindra Bank, and Larsen & Toubro saw notable declines as market pressure intensified.

On the other hand, Bharat Electronics, Bharti Airtel, Axis Bank, and Adani Ports emerged as early gainers, offering some support to the benchmark indices.

Market Outlook Remains Constructive Despite Volatility

Despite the morning dip, analysts maintain a positive broader outlook for the Indian market.

“Tuesday may bring pockets of volatility due to weekly F&O expiry and soft global cues, yet the broader tone stays constructive, buoyed by political stability, cooling inflation, soft crude, trade-deal optimism and FII buying,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Trade Agreement Developments Add to Market Watchlist

In a significant economic development, the first phase of the India-U.S. Bilateral Trade Agreement (BTA) is reportedly “nearing closure.” According to a government official, the agreement is expected to address the steep 50% tariffs imposed by the Trump administration on Indian goods and resolve key market access concerns of the U.S.

Currently, the U.S. has imposed a 25% reciprocal tariff and an additional 25% duty on Indian goods due to India’s purchase of Russian crude oil. Any progress on the BTA could boost economic ties and market sentiment in the coming weeks.

Strong Institutional Buying Provides Stability

Foreign Institutional Investors (FIIs) purchased equities worth ₹442.17 crore on Monday (November 17, 2025), according to exchange data. Domestic Institutional Investors (DIIs) also remained supportive, buying stocks worth ₹1,465.86 crore in the previous session helping sustain India’s bullish undertone.

Crude Prices Offer Relief

Brent crude, the global oil benchmark, dipped 0.47% to $63.90 per barrel, offering comfort to the Indian economy, which benefits from lower oil import bills. Softer crude prices continue to support inflation control and improve investor sentiment.

Conclusion

While early trade on Tuesday reflected a pullback after consecutive days of gains, the broader market narrative remains positive. With institutional buying, easing crude prices, and progress on the India-U.S. trade agreement, investors remain cautiously optimistic. Short-term volatility may persist, but underlying fundamentals continue to lend strength to India’s equity markets.