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Below the Quote on Daily Market Commentary for November 24th 2025 By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities witnessed selling pressure on Monday despite opening firm as profit booking pulled down nifty below the 26k mark. The benchmark Index Nifty50 closed with loss of 109 points at 25,960 (-0.4%). The broader markets also ended weak, with the Midcap index easing by 0.3% while the Smallcap index fell by 0.9%. Among sectors, the Nifty IT index was the clear standout, advancing more than 1.6% as markets factored in a higher likelihood of a December U.S. Federal Reserve rate cut (now estimated at 70% versus 44% a week earlier). This pushed four of the top six Nifty performers into the technology pack. In contrast, Defence stocks faced selling pressure, dragging the Defence index down 2.5%. The Nifty Realty index also declined 2%. The Indian rupee touched a record low of ?89.49 per dollar on Friday amid rising domestic demand for the greenback. This depreciation may contribute to near-term caution in equities as worries about imported inflation, higher input costs, and pressure on import-heavy sectors intensify. According to RBI, the rupee’s recent weakness is largely driven by elevated dollar demand, which could moderate if India and the U.S. secure a trade agreement. Foreign institutional investors sold equities worth ?1,766 crore on Nov 21, adding to the subdued mood. Earlier attempts by the Nifty to surpass the September 2024 peak had stalled due to the absence of the expected U.S.–India trade deal. Today marked the second consecutive session of profit-taking after the index had risen in eight of the previous nine sessions. In the absence of major domestic macro announcements until the GDP numbers on Friday, market sentiments are likely to remain cautious until we see some progress on the India US trade talks, while fluctuating foreign flows could add to interim volatility.
 

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