CHENNAI: Indian equities were trading with a mildly positive bias through the mid-morning session on Monday, November 24, supported primarily by firm global cues and renewed strength in information-technology and banking stocks. By around 10 a.m., the Nifty 50 was hovering near 26,118 while the Sensex was up roughly 100 points at about 85,360, reflecting a cautious but steady risk appetite among investors.
By 12.55 noon, the BSE Sensex almost settled at 85,320, up 89.3 points.
The broader mood was influenced by rising expectations that the US Federal Reserve may move closer to a rate cut, a shift that tends to improve sentiment toward emerging markets and bolster the earnings outlook for Indian IT companies with significant exposure to US clients.
IT counters were clearly in the lead, gaining more than one and a half percent in early trade. The sector reacted favourably to the view that easier monetary conditions in the US could revive enterprise spending and improve deal pipelines for Indian technology firms. Banking stocks also lent support to the indices, although the momentum there was more measured. Autos and certain industrial stocks, by contrast, showed early signs of fatigue, suggesting that the day’s gains were driven more by select heavyweight sectors than by broad-based enthusiasm.
The partially recovering rupee added another layer of support. The currency strengthened from a recent low, helped in part by what market participants interpreted as central-bank intervention. A firmer rupee typically eases imported-cost pressures and supports sentiment in sectors such as oil-to-chemicals, engineering and logistics. However, it can have a mixed impact on IT exporters, even though broader sector sentiment today was governed more by global policy expectations than by currency moves.
Trading activity through the morning continued to show the market’s reliance on international cues. With no major domestic macroeconomic announcements scheduled for the day, global flows and U.S. economic signals remained the dominant influencers of direction. Investors kept a close watch on incoming U.S. data and comments from Federal Reserve officials, aware that even a small shift in tone could swing global risk appetite. The absence of fresh domestic triggers meant that Indian equities largely mirrored the upward bias in other Asian markets.
Despite the modest gains, market breadth was not particularly strong. Mid-cap and small-cap stocks were largely subdued, reflecting a cautious approach among institutional investors who appear unwilling to chase aggressive positions until clearer cues emerge. Analysts noted that the Nifty’s ability to hold above the 26,000 mark remains a constructive sign, but warned that the index may face resistance in the 26,200–26,300 zone unless trading volumes pick up and sector participation broadens. Early-session movements suggested a market that is firm yet not fully committed, with many participants awaiting signals strong enough to justify a breakout from the current consolidation range.
The underlying tone, however, remains stable. Investors appear reassured by the global interest-rate outlook and the absence of domestic macro volatility. But the market still seems vulnerable to any abrupt reversal in international sentiment, given that the bulk of the morning’s momentum came from external rather than domestic factors.
As trading moves into the afternoon, the focus is likely to remain on global news flow, foreign institutional investor activity and currency movements. A sustained recovery in the rupee or evidence of renewed foreign buying could help the market extend its gains. On the other hand, if global cues turn less supportive or if heavyweight sectors lose traction, the indices may slip back into a narrow range. For now, the market is holding its ground, supported just enough by IT and banking to keep sentiment positive through the mid-morning session.