Domestic benchmark Nifty 50 recorded a nominal loss of 0.20% in the November futures and options (F&O) series, as sustained foreign outflows and lingering uncertainty over a potential India–US trade deal outweighed stable Q2 earnings and cooling large-cap valuations.

The index did hit a 52-week high of 26,246.65 during the series but failed to hold altitude and closed at 25,884.80 on the expiry day on Tuesday, November 25.

What moved the market in the November series?

Domestic market sentiment has improved after stable Q2 earnings and amid the prospects of an India-US trade deal. On a monthly scale, the Nifty 50 is up over a per cent in November so far, looking set to extend gains to the third consecutive month.

However, gains remain capped due to a confluence of factors. With US tariff concerns persisting and no clarity on the timing of an India–US trade deal, relentless FII selling—despite continued DII buying—kept the market flat in the November derivatives series.

Premium valuations of the Indian market and more attractively-priced opportunities in other emerging markets have triggered strong selling of Indian stocks by FIIs this year.

Another key factor is the lack of retail liquidity due to a flood of IPOs.

As highlighted by G Chokkalingam, the founder and head of research at Equinomics Research Private Limited, retail investors dominate the market directly and indirectly through mutual funds. Amid IPO frenzy, retail liquidity has tightened, which has reduced inflows into equity mutual funds as well as direct stock investments.

“IPOs have absorbed nearly ₹1.5 lakh crore, draining funds that would have otherwise gone into the secondary market. A large number of investors turned short-term traders to make quick listing gains. Many IPOs rallied initially but corrected later, trapping their liquidity,” Chokkalingam pointed out.

A key reason behind the recent underperformance of the Indian market is the absence of major global players in the artificial intelligence (AI) space, even as this year’s global market rally has been driven largely by tech companies riding strong optimism around AI.

Top losers of Nifty 50 in the November F&O series

Shares of Tata Motors PV (down 14%) ended as the top loser in the index in the November series. It was followed by Trent and Eternal, which declined by up to 10%.

Shares of Bajaj Finance, Grasim, and Tata Steel lost over 8% each, while those of Apollo Hospitals and Hindalco dropped 7%.

Shares of JSW Steel fell 6% and those of NTPC, Power Grid, Bajaj Finserv, and Coal India fell 5% each during the November derivatives series.

Top gainers of Nifty 50 in the November F&O series

On the other hand, Shriram Finance shares jumped 16%, followed by Asian Paints, which rose by 15% in the November series.

Adani Ports, SBI Life Insurance, HCL Technologies, Sun Pharma, and SBI were the stocks that gained 5-6% in the period.

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