Mumbai: There was bloodbath on Dalal Street on Monday. As the Bears took over the street during the first full session of Samvat 2081, investors’ wealth eroded by Rs 7.37 lakh crore today morning. The BSE Sensex tumbled over 1150 points to 78,551.98, while the NSE Nifty plunged nearly 400 points to 23,918.
As the weak trends in the market continued, the market capitalisation of BSE-listed firms eroded by Rs 7,37,744.54 crore to Rs 4,40,72,863.01 crore. Laggards from the Sensex pack included, Power Grid, Tata Steel, Tata Motors, Reliance Industries, Adani Ports, Sun Pharma, NTPC, and Titan. Despite the Bulls taking charge today, IndusInd Bank, HCL Technologies, Mahindra & Mahindra, and Tech Mahindra were in the positive territory.
Why Stock Market declined today
The stock market indices fell as Reliance Industries share price slumped over 3 per cent relentless selling by foreign investors. The fall in the market is also being attributed to investors turning cautious ahead of the US presidential elections 2024 and US Federal Reserve interest rate decision which is set to be announced later this week. According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 211.93 crore on 1st November, the first day of Samvat 2081.
The Indian stock market is hit because of foreign investors pulling out around USD 11.2 billion in October 2024. The analysts say that FIIs are pulling out money due to the elevated valuation of domestic equities and attractive valuations of Chinese stocks.
Another reason for the decline in the stock market is ‘disappointing’ Q2 earnings. The investor has turned very cautious due to disappointing Q2 earnings from Indian corporates.
Commenting on the domestic market, Santosh Meena, Head of Research, Swastika Investmart Ltd said, the US presidential election, US FOMC meeting, global oil prices and geopolitical events will weigh in on the indices.
“The upcoming week is poised to be eventful on the global front. The US presidential election on November 5 is a key focus, and the US FOMC (Federal Open Market Committee) meeting will be crucial. Geopolitical tensions and oil price movements will remain key variables as well,” he said.
The analyst also said the final phase of Q2 earnings will be critical for the market, while foreign institutional investors’ (FII) acts will be closely watched.
Palka Arora Chopra, Director, Master Capital Services Ltd, was of the view that the “outlook for the market will be guided by the US presidential election and major macroeconomic data such as HSBC India manufacturing PMI, services PMI, US Fed interest rate decision, US S&P global composite PMI, US S&P global services PMI and BoE (Bank of England) interest rate decision.”
