Indian stock markets reversed their early gains on Monday, November 9, as selling pressure in information technology (IT), automobile, metal and FMCG shares pulled benchmark indices lower. The decline came despite positive global cues, falling crude oil prices and renewed foreign investor interest in domestic equities.
The BSE Sensex opened 302.27 points, or 0.37%, higher at 81,301.67. The NSE Nifty 50 also started the session in positive territory, gaining 25.8 points, or 0.1%, to open at 25,012.20.
However, the initial optimism faded as investors began booking profits across several sectors. The Sensex subsequently dropped more than 200 points, while the Nifty slipped below the crucial 24,950 mark. At around 10.26 am, the Nifty was trading at 24,930.85, down 55.56 points.
The market witnessed a mixed trend, with pharmaceutical, healthcare and public sector banking stocks attracting buying interest, while IT and other heavyweight sectors faced selling pressure.
Among individual stocks, Gland Pharma emerged as a major gainer, climbing around 7% after reporting a strong performance in the September quarter. The company’s net profit increased 58% year-on-year, while revenue grew 23%.
HDFC Bank also supported the market during early trading, rising around 2%. Divi’s Laboratories was another stock in focus following its strong quarterly earnings, while pharmaceutical and PSU banking shares remained among the better-performing pockets.
On the losing side, Mphasis, Infosys and HCLTech featured among the leading IT index laggards. HCLTech declined around 2% during early trading. Finolex Cables, Cholamandalam Financial Holdings, GE Shipping, TeamLease Services and Jubilant FoodWorks were also among the stocks facing selling pressure.
The weakness in IT stocks weighed on overall market sentiment, offsetting gains in select banking and pharmaceutical counters.
The domestic market had received encouraging signals before trading began. GIFT Nifty was trading around 25,045 at 8 am, gaining 55 points, or 0.22%, from Sunday’s close. This indicated a potentially positive opening for Indian equities.
Asian markets also recovered on Monday after a difficult previous week, when concerns about artificial intelligence (AI) investments, semiconductor demand and technology valuations triggered heavy selling across several regional markets.
Japan’s Nikkei gained around 2.5%, while Taiwan’s benchmark index also advanced approximately 2.5%. The MSCI index of Asia-Pacific shares outside Japan rose 0.8%, recovering part of the previous week’s losses.
Wall Street also provided some support. The Nasdaq Composite gained 1.1% on Friday, while the S&P 500 advanced 0.31%. However, the Dow Jones Industrial Average declined 0.46%.
The recovery in global equities helped improve investor confidence, although uncertainty surrounding AI-related investments continued to influence market movements.
Another important factor supporting Indian equities was the decline in international crude oil prices. Brent crude futures fell 84 cents, or 0.85%, to $97.48 per barrel, while US West Texas Intermediate crude declined 0.35% to $90.51.
The decline followed comments by US President Donald Trump indicating that fresh military strikes against Iran were highly unlikely as negotiations to end the Middle East conflict continued.
Lower crude prices are generally positive for India because the country depends heavily on imported oil. A sustained decline can ease pressure on the import bill, reduce inflationary concerns and provide some relief to sectors sensitive to fuel costs.
Foreign portfolio investor (FPI) activity has also become an important factor in the recent market recovery. Foreign investors have purchased Indian shares worth more than $4.1 billion so far in November, marking their strongest monthly inflows since September 2024.
These inflows have helped domestic equities recover after a period of underperformance compared with several global markets. Investors have also shown interest in Indian stocks amid concerns over expensive AI-linked investments and the possibility of slower technology-related spending.
The recent rally in domestic equities had been particularly strong. The Sensex and Nifty had advanced around 10.5% over seven consecutive trading sessions through Friday, marking their longest winning streak this year.
The Nifty had reclaimed the 25,000 mark for the first time since February 27, closing at an eight-month high. However, the special Diwali Muhurat trading session on Sunday saw both benchmark indices surrender their early gains.
The Sensex ended Sunday’s special session 28.62 points, or 0.04%, lower at 80,999.40. The Nifty declined 43.95 points, or 0.18%, to 24,986.40.
Monday’s decline suggests that some investors are choosing to lock in profits after the sharp recovery witnessed over the previous week.
Meanwhile, market volatility showed signs of easing, with the India VIX declining more than 5% during morning trading. The volatility index measures the market’s expectation of near-term price fluctuations.
Despite the correction, some analysts remain optimistic about the medium-term outlook. Citi Research expects the Nifty 50 to reach 28,000 by the end of 2027, implying an upside of approximately 12% from its previous closing level of 24,986.40.
The brokerage cited improving corporate earnings, lower crude oil prices and the possibility of slower AI-related capital expenditure as factors that could support Indian equities.
Analysts have also identified the 25,300-25,600 range as a potential near-term target for the Nifty, although they caution that elevated valuations and recent gains could lead to further consolidation.
Stocks such as Mahindra & Mahindra, BHEL, Adani Enterprises, Wipro, Tata Steel, Siemens and Divi’s Laboratories are also expected to remain in focus as investors track September-quarter earnings, business updates and corporate announcements.
For investors, the immediate direction of the market will depend on foreign fund flows, global technology stocks, crude oil movements and corporate earnings. While improving global sentiment and lower oil prices offer support, continued selling in heavyweight IT stocks could keep the Sensex and Nifty volatile in the near term.