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The Indian stock market experienced a significant downturn on November 12, 2024, marking the fourth consecutive day of decline for both the Sensex and Nifty indices. This slump was primarily attributed to a confluence of factors, including weak earnings reports from various companies and substantial foreign outflows. The S&P BSE Sensex, a benchmark index representing 30 of the largest and most actively traded companies on the Bombay Stock Exchange, closed the day at 78,837.07, down a substantial 659.08 points from its previous close. Similarly, the NSE Nifty 50, another key index reflecting the performance of 50 large companies listed on the National Stock Exchange of India, ended the trading session at 23,935.95, down 205.35 points.
The decline was widespread across various sectors, with most sectoral indices trading in negative territory. The Nifty Metal index, reflecting the performance of metal companies, faced the steepest decline, plummeting 4.82%. This was closely followed by financial sector indices, with Nifty Financial Services down 1.56%, Nifty Financial Services 25/50 down 1.43%, Nifty Bank down 1.27%, and Nifty Private Bank down 1.08%. The auto sector also encountered pressure, with Nifty Auto slipping 1.39%. The FMCG and consumer durables sectors also suffered declines, with Nifty FMCG down 1.30% and Nifty Consumer Durables down 1.02%. Other sectors that saw a decline include Nifty Oil & Gas, Nifty Pharma, Nifty Media, and Nifty Healthcare Index. In contrast, only two sectors managed to stay in positive territory: Nifty IT, showing resilience with a gain of 0.48%, and Nifty Realty, advancing by 0.77%.
While the market witnessed some positive momentum, with companies like Trent, HCL Technologies, Infosys, Sun Pharma, and Reliance Industries recording gains, the overall sentiment was bearish, driven by the significant decline across most sectors. This downward trend suggests a challenging trading session with investors exhibiting significant selling pressure. The widespread negative sentiment can be attributed to a combination of factors, including concerns about slowing economic growth, rising inflation, and geopolitical tensions. The release of weak earnings reports by various companies further exacerbated the decline, adding to investors' concerns about corporate performance. Moreover, the persistent foreign outflows, indicating a lack of investor confidence, played a crucial role in driving down the market indices.
Source: Sensex, Nifty fall for fourth consecutive day; key reasons behind the slump