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The Indian stock market experienced a tumultuous start to the new Samvat year, with benchmark indices plummeting to a four-month low on Monday. This downturn was attributed to a broad-based selloff triggered by continued foreign investor exodus, following a record ₹94,000 crore withdrawal from Indian stocks in October. The S&P BSE Sensex saw a dramatic intraday decline of 1,480 points, reaching 78,232.60 points, representing a 1.9% drop. Similarly, the NSE’s Nifty-50 intraday low dipped by 2.1%, or 500 points. Although both indices recovered somewhat by the end of the trading session, the Sensex still closed 1.2% down at 78,782 points, marking its lowest level since August 6. The Nifty faced a steeper loss of 1.3%, resulting in its worst close since October 3, finishing below the 24,000 point mark.
The downward trend was fueled by a confluence of factors, including the muted second-quarter results of Indian companies, anxieties surrounding the US presidential election outcomes, and anticipation of another interest rate cut by the US Federal Reserve this week. Foreign portfolio investors contributed significantly to the selling pressure, net selling ₹4,330 crore on Monday. Conversely, domestic institutional investors acted as net buyers, injecting ₹2,936 crore into the market.
Among the Sensex stocks experiencing the most significant declines were Adani Ports (3.23%), Reliance (2.77%), Sun Pharma (2.68%), NTPC (2.59%), Bajaj Finserv (2.44%), and Tata Motors (2.31%). The selling spree extended beyond the Sensex, with the BSE’s Midcap and SmallCap indices also declining by 1.3% and 1.7%, respectively. Analysts observed a widespread downturn across all sectoral indices, with Nifty Reality, Oil and Gas, and Media sectors suffering the most substantial losses. This negative sentiment was reflected in the trading patterns, with a staggering 2,737 out of 3,932 stocks traded falling, indicating growing investor caution. Disappointing earnings forecasts for major companies further heightened concerns about slowing growth, exacerbated by the uncertainties surrounding the US Presidential elections, scheduled for Tuesday.