Market Rollercoaster! India Stocks Seesaw Amid Global Uncertainty – What Investors MUST Know NOW!

Economy

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Updated on 13 Nov 2025, 06:30 am

Indian stock markets, represented by the Sensex and Nifty, experienced a weak start on Thursday, later trading flat amidst significant volatility. The 30-share BSE Sensex saw a dip of 138.36 points (0.16%), settling at 84,328.15, while the 50-share NSE Nifty fell by 38.50 points (0.15%) to 25,837.30. Several prominent companies like Tata Motors, Infosys, Tech Mahindra, Mahindra & Mahindra, and HCL Technologies were among the laggards, while Asian Paints, Tata Steel, ICICI Bank, Bharti Airtel, and Larsen & Toubro were gainers.

According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, the market currently lacks strong triggers to reach new record highs, especially as the outcome of the Bihar polls is largely factored in. He highlighted the importance of a potential India-US trade deal to remove tariffs and the positive sign of India's October retail inflation falling to a low of 0.25%, which suggests a possible rate cut by the Monetary Policy Committee (MPC) in December. However, the Reserve Bank of India (RBI) faces challenges with weak monetary policy transmission.

In the near term, Vijayakumar expects the market to consolidate, awaiting further triggers. He noted that sustained uptrends might be challenging due to continued Foreign Institutional Investor (FII) selling and elevated stock valuations.

Global markets presented a mixed picture, with Asian equities trading variably, while US markets closed higher overnight. Brent crude oil saw a slight dip. Foreign Institutional Investors offloaded equities worth Rs 1,750.03 crore on Wednesday, contrasting with Domestic Institutional Investors' net buying of Rs 5,127.12 crore.

Impact: This news indicates a period of consolidation and caution in the Indian stock market, influenced by a combination of domestic economic data, global economic conditions, and FII/DII flows. The absence of strong positive triggers and the presence of FII selling could limit upside potential in the short term. However, positive economic developments like falling inflation could provide support. The market's reaction to upcoming events, such as poll results and trade deal negotiations, will be crucial. Impact Rating: 6/10

Difficult Terms: Benchmark Indices: These are stock market indices that are used as a reference point to measure the performance of the overall stock market or a specific segment. Examples include the BSE Sensex and NSE Nifty. Volatile: Refers to rapid and significant price fluctuations in the market or a specific stock. Global Cues: Information and events happening in international markets that can influence domestic market sentiment and trading. Laggards: Stocks or companies that perform worse than the overall market or their peers. Gainers: Stocks or companies that perform better than the overall market or their peers. Discounted: When the market has already priced in the expected outcome of an event (like election results) into stock prices. Penal Tariffs: Taxes imposed by one country on goods from another country as a penalty or in retaliation. Reciprocal Tariffs: Tariffs that are imposed by one country on another country's goods in response to similar tariffs imposed by that country. Retail Inflation: The rate at which the general level of prices for goods and services in an economy is rising, affecting the purchasing power of consumers. Measured by the Consumer Price Index (CPI). Rate Cut: A reduction in the central bank's policy interest rate, intended to stimulate economic activity by making borrowing cheaper. MPC (Monetary Policy Committee): A committee, usually part of the central bank, responsible for setting interest rates and managing monetary policy. Monetary Policy Transmission: The process through which the central bank's monetary policy decisions (like interest rate changes) affect the broader economy and financial markets. RBI (Reserve Bank of India): India's central bank, responsible for monetary policy, currency regulation, and banking supervision. Consolidate: A period where the price of a security trades within a narrow range, indicating a pause or indecision in the market. Short-covering: The act of buying back a security that was previously sold short, often to close out a losing position, which can drive prices up. FII (Foreign Institutional Investor): An investment entity based outside India that invests in Indian securities. DII (Domestic Institutional Investor): An investment entity based in India (like mutual funds, insurance companies) that invests in Indian securities.