Stock Market Report Today - 21st November 2024

Indian equity markets closed lower on November 21, weighed down by concerns over bribery charges against Gautam Adani and weak global cues. The Nifty and Sensex both registered significant losses, with the Nifty slipping below the 23,350 mark. PSU banks, particularly those with exposure to Adani Group companies, were under intense selling pressure, contributing to the day's broader market decline. While mid-cap and small-cap stocks showed some resilience, broader sectoral declines led the market's downward trend. Analysts remain cautious, urging investors to stay selective amidst the ongoing uncertainties..

Key Highlights of Today’s Stock Market Movements: 

• Sensex: Fell by 422.59 points, closing at 77,155.79 (-0.54%).
• Nifty 50: Declined 168.60 points, ending at 23,349.90 (-0.72%)
• Nifty Bank: Dropped 253.60 points, closing at 50,372.90 (-0.50%).
• Nifty IT: Rose by 204.45 points, ending at 41,952.80 (+0.49%).
• BSE SmallCap: Declined 349.79 points, closing at 52,141.15 (-0.67%).
• BSE MidCap: Fell by 162.97 points, ending at 44,467.99 (-0.37%).
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Nifty, Sensex, and Market Trends Analysis

The Indian markets faced a sharp sell-off, led by news of bribery charges against Gautam Adani and geopolitical tensions between Russia and Ukraine. The news triggered a wave of risk-off sentiment, which led to a broad-based sell-off, particularly in stocks linked to the Adani Group. Key PSU banks such as SBI, Bank of Baroda, and Punjab National Bank dropped up to 8%, reflecting investor concerns about their exposure to the Adani Group. The Nifty and Sensex both closed deep in the red, while sectoral indices such as Energy, Metal, FMCG, and Infra suffered significant losses, falling as much as 2%.

Despite an early rally in Nifty IT stocks, the index ended only marginally higher, driven by Tech Mahindra, HCL Tech, and Infosys, who gave up most of their early gains by afternoon. Other sectors, including Auto and Oil & Gas, were under pressure as profit-booking led to a decline in their stock prices.

Top Gainers and Top Losers in the Stock Market Today

The Top gainers list, consist of Power Grid Corporation: Closed at ₹325.90, up by ₹10.85 (+3.44%), UltraTech Cement: Closed at ₹10,954.85, up by ₹185.30 (+1.72%), Hindalco: Closed at ₹648.05, up by ₹8.05 (+1.26%), Grasim Industries: Closed at ₹2,534.85, up by ₹26.70 (+1.06%), HCL Tech: Closed at ₹1,836.35, up by ₹15.80 (+0.87%).

Top Losers list, Adani Enterprises: Closed at ₹2,183.65, down by ₹637.85 (-22.61%), Adani Ports: Closed at ₹1,114.65, down by ₹175.00 (-13.57%), SBI Life Insurance: Closed at ₹1,477.95, down by ₹44.95 (-2.95%), NTPC: Closed at ₹356.15, down by ₹10.55 (-2.88%), SBI: Closed at ₹780.75, down by ₹22.25 (-2.77%).

Market Momentum Over Time

Indian equity markets experienced high volatility on November 21, with early optimism fading as news of bribery charges against Gautam Adani spread. Adani Group stocks were at the epicenter of the market decline, with Adani Enterprises and Adani Ports plummeting by more than 20%. Investor concerns about the exposure of PSU banks to Adani Group companies added to the bearish sentiment. The geopolitical uncertainty, fueled by escalating tensions in the Russia-Ukraine war, further weighed on market sentiment.

Despite the sharp drop in the broader market, mid-cap and small-cap indices showed some relative strength, with mid-caps losing 0.3% and small-caps declining by 0.7%. The broader market's performance is expected to remain under pressure as investors await further developments related to the Adani charges and geopolitical risks.

Major Market Drivers and Key Movers

The Adani bribery charges were the primary trigger for today’s market downturn. The indictment of Gautam Adani and other executives in connection with alleged bribery to secure solar energy contracts had a significant impact on Adani Group stocks, which saw a sharp drop in value. International brokerage Bernstein, however, suggested that the market may move past the news within a few days, implying that the broader market may not be significantly impacted in the long term.

In contrast, Power Grid Corporation (+3.44%) and UltraTech Cement (+1.72%) were among the top gainers. These stocks were supported by strong fundamentals and investor interest in defensive sectors. Indian Hotels also extended its rally, surging by over 4% after Jefferies raised its target price for the stock, citing its growth prospects.

Intraday Stock Market Dynamics and Key Trading Levels

Nifty opened on a negative note and continued its downward trend through the session, with key support levels at 23,350. On the downside, if Nifty breaks 23,350, the next support is seen at 23,200-23,100. Resistance lies at 23,650-23,700. The Nifty Bank index also saw substantial declines, ending at 50,372, but PSU banks took the brunt of the selling pressure, reflecting investor concerns.

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