Indian Markets Slip From Early Highs as IT, Steel, and Cement Sectors Drag Nifty to 24,882

Indian benchmark indices turned lower during midday trading, slipping below the key psychological level of 25,000 as broad-based selling in IT, metals, and cement offset early gains in banking and pharma. Meanwhile, the Indian rupee touched a 2026 high against the US dollar.

Indian equity markets turned sharply lower by midday, pulling the benchmark Nifty 50 down 104.60 points, or 0.42 per cent, to 24,881.80 as of 1:21 pm. The index had opened on a higher note at 25,076 but encountered selling pressure at elevated levels. Similarly, the Sensex declined 362.13 points, or 0.45 per cent, to trade at 80,637.27 compared to its previous close of 80,999.40.

Market breadth on the BSE turned negative, with 2,517 stocks declining against 1,757 advances out of a total of 4,530 traded stocks. During the session, 133 stocks touched 52-week highs, while 52 stocks hit 52-week lows. Stocks trading in the upper circuit stood at 209, compared to 174 in the lower circuit.

Selling pressure broadened across the IT, metal, and cement sectors, overwhelming early gains in banking and pharmaceutical stocks. HCL Technologies led the Nifty declines, falling 2.98 per cent to ₹1,399, followed by Tata Steel, which dropped 2.64 per cent to ₹185.18. UltraTech Cement fell 2.47 per cent to ₹12,190, Infosys declined 2.24 per cent to ₹1,145.40, and Bharti Airtel shed 1.92 per cent to ₹2,045.50.

On the other hand, State Bank of India emerged as the top Nifty gainer, rising 1.74 per cent to ₹1,033.65 with heavy volumes. Nestle India recovered from morning losses to gain 1.09 per cent to ₹1,287.40. HDFC Bank added 0.98 per cent to ₹791.80, ICICI Bank gained 0.88 per cent to ₹1,578.80, and Trent rose 0.80 per cent to ₹3,082.

Ponmudi R, CEO of Enrich Money, noted that the opening gains were short-lived. He stated that the Nifty 50 encountered selling pressure at higher levels, pulling the index back below the crucial 25,000 mark. He added that the index needs to sustain a breakout above the 25,150–25,200 resistance zone to regain upward momentum.

The IT sector bore the brunt of the session's losses, impacted by elevated US Treasury yields and rising expectations of a December Federal Reserve rate hike following a stronger-than-expected US October jobs report. Market focus has now shifted to the upcoming US CPI data release.

In the currency markets, the Indian rupee extended its advance to trade around 93.70 against the US dollar, marking its strongest level since April. The currency was supported by foreign portfolio investment inflows of approximately $1.5 billion, while the Reserve Bank of India appeared to ease its defense of the 94.30 level.

In commodities, COMEX gold futures advanced around 1.3 per cent to $4,130, while COMEX silver climbed roughly 2.2 per cent to $53.10. Domestic MCX gold and silver also recorded gains, though the rupee's sharp appreciation limited the translation of international bullion gains into domestic prices. WTI crude oil traded around $91.20, gaining 0.9 per cent as diplomatic signals from Washington helped reduce geopolitical risk premiums.

"The midday pullback in the Nifty below the 25,000 mark highlights the sensitivity of domestic equities to global macroeconomic cues, particularly US Treasury yields and upcoming inflation data. At the same time, the appreciation of the Indian rupee to a 2026 high, backed by strong foreign portfolio inflows, signals steady macroeconomic resilience. Investors and market participants should closely monitor key resistance zones and currency movements before making major capital allocation decisions in this volatile environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes