Friday saw the benchmark stock indexes, the NSE Nifty50 and the BSE Sensex, close down for the second straight day.

The Nifty 50 fell 51.15 points, or 0.21 percent, to 24,148.20, while the BSE Sensex lost 55.47 points, or 0.07 percent, to close at 79,486.32.

As many as 27 of the 50 NSE Nifty50 component equities finished the day down, with losses reaching 3.50%. These stocks were pulled down by Trent, Coal India, Tata Steel, Asian Paints, and State Bank of India.

On the other hand, 23 of the Nifty50’s component stocks—including Mahindra & Mahindra, Titan, Tech Mahindra, Nestle India, and Infosys—managed to conclude the day Friday in the green, with gains reaching 2.40 percent.

The Nifty Midcap100 and Nifty Smallcap100 fell 1.33 and 1.70 percent, respectively, as the overall markets ended the day down.

With the exception of Nifty IT, Pharma, and FMCG, every sectoral index finished down. The two sectors indexes that lagged the most were Nifty Realty and Media, both of which had declines of more than 2%.

There are now two distinct market trends: the US-led global market is strong, while the Indian market is poor. The “Trump trade,” the anticipated execution of the promised corporate tax cuts, and its favorable effect on US company profits are now driving the record-breaking upswing in the US market. The persistent selling by FIIs, which has persisted this month as well, is substantially to blame for the deterioration in the Indian market. FIIs have sold stock for Rs 16,445 crores in the cash market as of November, after the huge FII selling of Rs 1,13,858 crores in October.

The high values in India, which seem glaring given the profit slowdown shown in the Q2 figures, are the reason for the FII selling. The situation may shift with FIIs lowering sales and perhaps becoming purchasers if the Q3 figures and leading indications show a rise in profitability. The data will have to be watched and waited for by investors. Investors might think about moving part of their funds from the overpriced mid and smallcaps to high-quality largecaps in the meantime. This plan will pay off in the medium to long term.

Worldwide Cues

In contrast, Asia-Pacific markets rose Friday in response to the US Fed’s move.

The broad-based Topix increased 0.1%, while Japan’s Nikkei 225 gained 0.3%.

The small-cap Kosdaq rose 1.5%, while the South Korean stock exchange’s Kospi was up 0.7%.

The CSI 300 in mainland China gained 1.01 percent, while the Hang Seng index in Hong Kong increased 1 percent. The Shanghai Composite had a 0.6% advantage.

The S&P/ASX 200 in Australia increased by 0.9%.

Aside from that, Wall Street shares reached all-time highs on Thursday, boosting global stock markets, while US Treasury yields fell further as investors adjusted to a second Donald Trump administration and the Federal Reserve’s interest rate decrease.

The Nasdaq Composite increased 1.5%, the Dow Jones Industrial Average remained unchanged, and the S&P 500 increased 0.74 percent. For the second day in a row, both the S&P 500 and the Nasdaq closed at all-time highs.

A record high was also reached by the MSCI index of global equities, which increased by 0.9%.

The broad STOXX 600 index in Europe increased 0.6% after gains in Asian stocks earlier in the day. Even onshore Chinese blue chips saw a 3% increase as market confidence over possible stimulus surpassed worries about escalating trade tensions.