https://drive.google.com/file/d/1HSdcvTe92Ix1jIK42DXwKmyuQyXyw37s/view?usp=drivesdk
π» Indian indices snapped their winning streak, ending lower as profit-taking emerged near all-time highs. The Sensex shed over 400 points and the Nifty fell below 26,100, with banking majors leading the decline.
π» The Indian Rupee crashed to a historic low, closing near 89.5 against the US dollar. The sharp depreciation was fueled by persistent outflows from foreign investors and broad strength in the dollar.
π» Foreign Institutional Investors (FIIs) continued their selling spree in November, contributing to the pressure on both equities and the currency market.
π A significant silver lining appeared on the global front as crude oil prices continued to slide, with US crude trading below $60 per barrel. Lower oil prices are a major positive for India, helping to cool inflation and reduce the import bill.
π Domestic investor participation remains a formidable force. The total number of Demat accounts is nearing 21 crore, with systematic investment plan (SIP) contributions soaring past Rs. 29,500 crore per month, providing strong local support to the market.
π In a boost for corporate governance, SEBI introduced a new, stricter framework for determining the materiality of related party transactions, aiming to enhance transparency.
The market faced a clear tug-of-war today between strong external headwinds and resilient domestic fundamentals. A plunging rupee and sustained FII selling were the primary drivers behind the dayβs correction, putting significant pressure on the indices. However, the narrative isnβt purely negative. The structural strength of domestic retail flows continues to provide a crucial buffer, absorbing selling pressure. Furthermore, the sharp decline in global crude oil prices offers a powerful tailwind for the Indian economy, easing concerns around inflation and the trade deficit. The current dynamic is one of cautious consolidation, as investors weigh the risks from a weak currency against the benefits of lower energy costs and unwavering local support.
Stay sharp.
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