The Indian stock market witnessed a sharp decline on Thursday, November 28, as escalating geopolitical tensions and profit booking weighed heavily on investor sentiment. The broader NSE Nifty dropped over 400 points to hit a low of 23,873.35, while the BSE Sensex nosedived by 1,100 points, trading at 79,073.69. This led to a loss of ₹82,000 crore in market capitalization for all listed companies on the BSE.
Key Drivers of the Sell-Off:
- Geopolitical Tensions:
- The market sell-off was primarily triggered by rising tensions between Russia and Ukraine. Reports of Russia’s missile and drone attacks on Ukraine’s energy infrastructure added to global uncertainties, impacting investor sentiment.
- Sectoral Pressures:
- IT, auto, and banking stocks faced significant selling pressure, contributing heavily to the indices’ downfall.
- Infosys, in particular, was among the top contributors to Nifty’s decline, with its shares dropping over 3.5%. This followed global cues of profit booking in IT stocks after a US Federal Trade Commission antitrust investigation into Microsoft.
- F&O Expiry Day Volatility:
- The Futures and Options (F&O) expiry added to the market’s volatility. Traders squared off positions, amplifying the downward momentum.
- Profit Booking in IT Stocks:
- Following pressure in US IT stocks, Indian IT counters faced profit booking. This was compounded by the antitrust scrutiny of Microsoft, raising concerns about the broader technology sector.
- Broader Market Context:
- Despite today’s drop, the index had rallied over 1,000 points from last Thursday’s low, partly driven by optimism surrounding the Maharashtra election outcome. The sell-off could also be seen as a correction after the recent run-up.
Nifty 50 top losers today on 28 November: SBI Life Insurance, Mahindra & Mahindra, Infosys and more
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