Market Overview: Significant Declines
Indian benchmark indices, Sensex and Nifty, faced considerable selling pressure on Monday, reversing gains made during the Muhurat trading day. The NIFTY 50 opened slightly higher at 24,315.75 points but quickly fell, while the BSE Sensex declined by 10 points to 79,713. Both indices witnessed further declines in early trade, with the Sensex crashing over 1,000 points and the Nifty plunging 229.4 points to 24,074.95.
Influencing Factors: Caution Ahead of Key Events
This downturn was attributed to a combination of factors, primarily cautious investor sentiment ahead of the upcoming US presidential election and the Federal Reserve’s interest rate decision. Ajai Bagga, a banking and market expert, pointed out several key events impacting market dynamics. “Investors are bracing for the outcome of the US presidential election on Tuesday,” he noted. “The Fed will meet on Wednesday and Thursday, with a 25 basis points (0.25%) rate cut anticipated. Additionally, OPEC+ has decided not to raise production levels due to slow demand.”
Foreign Institutional Selling Intensifies
Foreign Institutional Investors (FIIs) contributed significantly to the negative sentiment by offloading equities worth Rs 211.93 crore. October alone saw foreign investors withdraw a staggering Rs 94,000 crore from the Indian stock market, marking it the worst month for outflows, driven by high domestic valuations and the increasing attractiveness of Chinese stocks.
Sector Performance: Major Laggards and Gainers
Among the 30 stocks in the Sensex pack, major laggards included Sun Pharma, Reliance Industries, Infosys, Tata Motors, Titan, Maruti, and NTPC. Conversely, Mahindra & Mahindra, Tech Mahindra, HCL Technologies, and IndusInd Bank were among the few gainers. On the National Stock Exchange, sectoral indices showed mixed results, with the Nifty IT index declining by 0.57%. Of the Nifty 50 stocks, only nine opened with gains while 42 saw declines.
Upcoming Announcements: Earnings Reports
Quarterly earnings announcements are set for today from various companies, including Indian Railways Finance Corp, IRCTC, Exide Industries, Raymond, Sundaram Finance, and ABB India, among others, for the second quarter of FY2025.
Asian Market Trends: Mixed Performances
In contrast to the Indian market, Asian indices displayed positive trends, with South Korea’s KOSPI index leading gains with a 1.49% increase. Japan’s Nikkei was closed for a cultural holiday, while Hong Kong’s Hang Seng saw a marginal rise of 0.16%.
