IT Stocks Face Selling Pressure While Defence and Consumer Sectors Rally; Nifty Holds Above 23,800

Indian equity markets traded in positive territory during afternoon trade on Wednesday, November 4. The Sensex stood at 76,974.41, up 56.56 points or 0.07 per cent as of 1.05 pm, while the Nifty 50 was at 23,832.15, up 21.30 points or 0.09 per cent from its previous close of 23,810.85. Both indices recovered from early weakness after opening at 76,853.11 and 23,742.25 respectively, holding onto modest gains amidst broad-based trade.

Market breadth on the BSE remained positive. Out of 4,379 stocks traded, 2,813 advanced, 1,323 declined, and 243 remained unchanged. A total of 90 stocks touched fresh 52-week highs, while 94 hit 52-week lows. Additionally, 174 stocks were locked in upper circuits and 167 in lower circuits. The total market capitalisation of BSE-listed companies stood at ₹4,90,92,906.96 crore, equivalent to $5.18 trillion, with the registered investor count reaching 26.85 crore.

Sectoral trends showed clear divergence. Bharat Electronics Ltd (BEL) led the Nifty gainers, surging 3.88 per cent to ₹394.85 with 144.57 lakh shares traded worth ₹563.15 crore. Adani Enterprises followed with a gain of 3.61 per cent to ₹2,687. Other notable gainers included Max Healthcare, which rose 2.59 per cent to ₹918.65, ITC up 2.21 per cent to ₹279.95 on heavy volumes, and Titan, which added 2.19 per cent to ₹4,662.

Conversely, technology stocks bore the brunt of selling pressure. TCS was the top Nifty loser, falling 2.75 per cent to ₹2,430.40. Infosys slipped 2.33 per cent to ₹1,121.30 on volumes of 61.18 lakh shares. BSE Ltd declined 2.09 per cent to ₹3,589, Eternal shed 1.92 per cent to ₹342.75, and HCL Technologies fell 1.87 per cent to ₹1,412.20.

Ponmudi R, CEO of Enrich Money, noted that markets opened marginally lower but staged an early recovery, pointing out that FMCG and realty stocks gained more than 1 per cent in early trade while IT stocks traded mildly lower. He added that sustained buying interest, softer crude prices, and continued strength in the rupee supported domestic equities.

On the currency front, the rupee strengthened to around ₹94.53 against the US dollar, extending a four-session run of lower closes in the USD/INR pair. Meanwhile, WTI crude slipped 1.26 per cent to around $95.53 amid potential diplomatic progress on the Iran conflict, even as geopolitical risks remained. In precious metals, COMEX Gold traded around $3,947, while MCX Gold futures held above the ₹1,40,000 mark at ₹1,40,190.

Technically, the Nifty 50 held above its 50-day EMA near 23,196 with an RSI around 68, indicating strong momentum. Analysts suggest that a decisive breakout above the 24,000 resistance level will be necessary to confirm the next leg of the upward move, with immediate support placed at 23,600. Globally, traders are monitoring US midterm election results and the upcoming US payrolls report for near-term direction.

"The current market behavior highlights a clear sector rotation, where investors are favoring defensive and domestic consumption themes while trimming positions in technology counters. For businesses and entrepreneurs, tracking these macroeconomic shifts, currency movements, and commodity trends is essential for financial planning and capital allocation. While domestic market breadth remains encouraging, global triggers like crude oil prices and currency stability will dictate near-term sentiment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes