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Indian Markets Dip Amidst Global Jitters
21 Nov
Summary
- Major Indian stock indices, Sensex and Nifty, saw significant declines.
- The Indian economy indicated strong expansion in November.
- Several IPOs saw mixed subscription rates, with one oversubscribed.
Indian equity markets experienced a broad-based decline, with the benchmark Sensex and Nifty indices closing lower. All sectoral indices, except FMCG, ended in the red, led by steep drops in metal, PSU bank, and realty shares. This downturn occurred despite robust economic data, which indicated continued strong expansion in India's composite output for November, staying well above neutral levels.
Individually, manufacturing output saw a softer rise while services activity strengthened. However, this economic resilience did not translate into market gains, as broader market indices like the mid-cap and small-cap segments also underperformed. The India VIX, a measure of expected volatility, surged, signaling increased investor apprehension about near-term market movements.
In the IPO space, Excelsoft Technologies' offering was heavily subscribed, while Sudeep Pharma's issue saw more modest uptake. Global market trends mirrored the cautious sentiment, with Asian and European markets also trading lower, influenced by economic data and uncertainty surrounding interest rate policies. Wall Street experienced a significant drop overnight, reflecting a return of jitters over stock valuations.
