Why did the Indian market decline for three consecutive sessions?

The market declined due to monthly derivatives expiry, a weaker rupee, and persistent FII selling, alongside caution ahead of the FOMC meeting.

Which major companies contributed to the decline in the Indian stock market?

Adani Enterprises, HDFC Bank, and ICICI Bank were significant drags on the market's performance.

What is the India VIX and what does its current movement indicate?

India VIX measures expected market volatility; its recent tumble suggests reduced short-term volatility expectations.

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Indian Markets Tumble Amidst Volatility and FII Selling

25 Nov

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Summary

Domestic market declined for third session on derivatives expiry.
Rupee weakened against dollar, impacting investor sentiment.
Major stocks like Adani Enterprises dragged the market down.

The Indian domestic market faced a third consecutive session of decline, marked by moderate losses after a day of significant volatility driven by monthly derivatives expiry. A softer rupee and ongoing selling by Foreign Institutional Investors (FIIs) contributed to investor apprehension, further amplified by the impending FOMC meeting and uncertainty surrounding a potential interim US-India trade agreement.

Across the board, the S&P BSE Sensex saw a notable drop, closing down by 313.70 points. Similarly, the Nifty 50 index fell below the 25,900 mark, reflecting a broader risk-off sentiment that has persisted over recent trading sessions. While PSU banks and metal stocks found some support, sectors like consumer durables and IT experienced downward pressure.

In contrast to the main indices, the S&P BSE Mid-Cap and Small-Cap indices managed to eke out modest gains, indicating pockets of resilience. Market breadth was positive, with more stocks advancing than declining on the BSE. The India VIX, a measure of market volatility, saw a significant tumble, suggesting a decrease in expected short-term volatility despite the day's price movements.