By Vineet Kumar 
From Rally to Rout: Sensex Closes 800 Points Below Day’s High as Caution Rules the Day
The stock market witnessed a dramatic turnaround today, with benchmark indices Sensex and Nifty giving up most of their earlier gains, exposing the market’s underlying weakness. After plunging over 11% from their record highs in the last two months, today’s session initially signaled a technical rally, only to fizzle out by the close.
Adding to the unease, geopolitical tensions flared up after Ukrainian armed forces reportedly struck Russian territory with an ATACMS missile, rattling global investor sentiment.
By the end of the day, the Sensex closed at 77,578.38, gaining a modest 239.37 points (0.31%), while the Nifty ended at 23,518.50, up 64.70 points (0.28%). The broader market, however, saw mixed sentiments, with 2,197 stocks advancing, 1,591 declining, and 95 remaining unchanged.
“This Is Just a Bounce, Not a Recovery”
Ajit Mishra, Senior Vice President at Religare Broking, was quick to temper expectations. “This is just a bounce-back after a consistent downtrend over the past two months,” he said, advising investors to wait for more decisive moves before entering the market.
The correction—driven by heavy foreign outflows, high valuations, and disappointing Q2 earnings—has left the indices bruised, dropping over 11% from their peaks. While the pace of foreign institutional investor (FII) selling has slowed, Mishra stressed the importance of maintaining this trend. “A selective approach from FIIs is likely,” he added.
Sector Highlights: Realty and Auto Shine
Among the sectors, Nifty Realty and Nifty Auto emerged as the top performers, each gaining 1.5%. Real estate stocks like DLF, Lodha, and Godrej Properties led the rally, thanks to a steep correction in recent weeks. Meanwhile, auto stocks saw renewed interest, bolstered by robust festive season sales. For example, M&M topped the Nifty with a 3% gain, driven by a glowing report from CLSA, which reaffirmed its “outperform” rating and set a target price of â‚ą3,440—16% higher than current levels.
IT Stocks Waver, Broader Markets Outperform
Tech stocks staged a partial recovery, with the IT index closing 0.8% higher after yesterday’s steep 2% drop. Heavyweights like TCS, HCL Tech, and Infosys led the charge but failed to sustain stronger gains.
On the other hand, the broader market stole the show. Mid-cap and small-cap indices surged nearly 1% each, outpacing the headline indices. Despite this, analysts like Vijayakumar of Geojit Financial Services advised caution. “Don’t rush to grab these stocks yet; there’s still downside potential. Stick to quality large-caps, which are showing resilience,” he said.
Key Movers
Gainers: M&M, Tech Mahindra, HDFC Bank, Trent, and Eicher Motors led the rally.
Laggards: SBI Life, Hindalco, Reliance, HDFC Life, and SBI saw declines.
Another standout was PSP Projects, which jumped 10% on reports that the Adani Group is in advanced talks to acquire a 60.14% stake in the Gujarat-based construction company.
Looking Ahead
The near-term outlook remains uncertain. Anand James of Geojit Financial Services predicts that any gains will likely stay within a narrow range of 23,733 to 23,788 unless stronger signals emerge. “If the Nifty fails to hold above 23,565, we might see a delay in recovery. However, a sharp drop seems unlikely for now,” he noted.
Despite today’s volatility, market watchers see hope for a recovery, but patience remains key. The markets will remain closed on Wednesday, November 20, due to Maharashtra Assembly polls.
