CHENNAI: Indian equities ended lower on Tuesday (November 18), snapping a six-day winning run as investors turned cautious ahead of key US economic data and shifting expectations around the Federal Reserve’s next policy move. After opening on a soft note, both benchmarks drifted through the session, with the Nifty slipping below the 26,000 mark and the Sensex also closing modestly in the red. The pullback was not steep, but the weakness was broad enough to signal some profit-taking after the recent rally.
Global cues played a decisive role. The likelihood of a near-term US rate cut has reduced, tempering risk appetite across emerging markets. With US yields staying firm, foreign investors showed signs of hesitation, and domestic traders preferred to lighten positions rather than extend the rally without fresh triggers. Asian market softness and a firmer dollar added to the cautious tone.
On the domestic front, sentiment remained underpinned by improving earnings trends and supportive macro signals. Corporate results for the wider universe have strengthened on the back of easing inflation and better consumer purchasing power following recent tax cuts. Selective pockets of the market—particularly companies aligned with India’s capex and infrastructure cycle—continue to draw interest. A standout development in the broader market was the strong listing of PhysicsWallah, which reflected that investors are still willing to back high-growth stories even in a muted session.
The rupee held relatively steady despite global currency pressures, helped by two-way flows, and did not add additional stress to equity sentiment. However, valuations across the market remain elevated, prompting investors to be more selective as they reassess risk in the face of global uncertainties.
The near-term direction will depend heavily on upcoming U.S. data and the tone of central-bank commentary. Traders will also watch whether domestic inflows can offset intermittent FII caution. With the Nifty hovering around a key psychological level, the next few sessions will indicate whether the recent rally resumes or gives way to a more prolonged consolidation.
Overall, Tuesday’s decline appears more like a pause than a reversal, but markets are clearly shifting into a more data-dependent, globally sensitive mode.