Market’s Recent Struggles
The stock market has displayed a fluctuating behavior, and the Sensex, in particular, has experienced drops and recoveries. One notable episode involved
a 2,350-point decline over a week. Several factors contributed to this, including global risks and foreign institutional investor (FII) selling. Another instance saw the Sensex shedding 1,600 points across four days. The market experienced declines for three consecutive days, with the Sensex falling by 436 points and the Nifty dropping below 25,850. Further contributing to the negative sentiment, the market saw a 3-day losing streak, with the Sensex extending losses.
Global and Local Forces
Global influences played a significant role in market performance. Trade concerns and FII selling were cited as factors behind market declines. External risks and global factors were also mentioned as contributing to downward pressure. On the other hand, the market witnessed a rebound, with the Sensex gaining 1,100 points in two days, influenced by rupee appreciation and increased FII buying. Specific instances included a 595-point jump in the Sensex, with the Nifty surpassing 25,900, influenced by several factors. The market responded positively to the NDA's Bihar victory, with PSU banks and pharma stocks performing well. A surprising cut by the RBI boosted the D-Street, resulting in a 447-point surge for the Sensex, with the Nifty exceeding 26,100.
Sectoral Performance Review
Several sectors influenced market movements. IT and financial stocks were noted as factors that cushioned market weakness, while IT stocks led a pullback, snapping a two-day rally. Financial stocks also faced selling pressure. Reliance Industries experienced marginal profit growth in the third quarter, driven by O2C and Jio. Adani Energy Solutions' third-quarter results showed a 2% year-over-year profit decline, with revenue up 15%. TCS reported a 14% year-over-year fall in profit. Tech Mahindra’s Q3 results showed profit jumps. HCL Technologies reported an 11% year-over-year decrease in PAT. Infosys' Q3 results indicated a 2% year-over-year decline in profit, despite a 9% revenue increase.
Market Sentiment Shifting
Market sentiment appeared to shift depending on different factors. At times, the market responded positively, with gains observed due to rupee gains and strong FII buying. Conversely, the market faced selling pressure from FIIs. There was an overall sense of uncertainty due to global risks. In the third quarter, Reliance Industries experienced marginal profit growth, driven by O2C and Jio. The market started 2026 strongly, with the Nifty reaching a lifetime high and the Sensex rallying 0.7%.
Factors Behind Drops
The market's instability was influenced by a variety of factors. Profit booking and weak global cues contributed to market declines. FII selling exerted pressure on stocks. There was concern over tariffs. The market declined due to the combination of global risks and FII selling. A sharp market selloff occurred, driven by several factors. These factors included global risks, FII selling, trade worries, and reactions to specific financial results.
