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Below the Daily Market Commentary for 21st November 2025 by Siddhartha Khemka, Motilal Oswal Financial Services Ltd

Indian equities declined on Friday, giving up the gains seen in the previous session. The Nifty fell after failing to cross its previous all-time highs of 26277, ending its two-day advance as sentiment weakened amid a global selloff triggered by inconclusive U.S. employment data, which kept the near-term interest-rate outlook unclear. Broader indices underperformed, with the Nifty Midcap100 and Smallcap100 each finishing down by under 1%.Sectoral performance was broadly negative. Metals and realty were the worst hit, both dropping over 2%. PSU banks, financial services and media also registered notable declines. Pharma, consumer durables, oil and gas and healthcare recorded modest losses, while FMCG inched higher and auto was nearly unchanged with a slight dip. IT stocks faced selling pressure due to weakness in US tech shares which overshadowed Nvidia’s better-than-expected quarterly results, adding to the drag on domestic technology counters. Market sentiment was further pressured by fresh ambiguity around U.S. monetary policy. September employment data showed stronger job additions, diminishing the likelihood of a December rate cut. Meanwhile, the Indian rupee slid to a new all-time low against the U.S. dollar amid weak risk appetite and fading expectations of a Fed rate reduction. The currency reached 88.83, breaching its previous record of 88.80 touched in late September and earlier this month. Overall, we expect markets to remain firm next week supported by buying on dips, improving demand outlook in Q3 and resilient flows. Any progress on the India-US trade talks would be a key short term catalyst for the markets. 

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