On Monday morning, equity investors saw a staggering loss of Rs 7.37 lakh crore as the BSE Sensex plummeted by 1,192 points, highlighting the volatility in the market.
Factors Behind the Drop
The decline was primarily driven by significant sell-offs from foreign investors and a sharp downturn in key stocks, particularly Reliance Industries. Caution among investors has heightened ahead of the upcoming US presidential elections and a crucial Federal Reserve interest rate decision expected later this week.
During morning trading, the BSE benchmark fell to 78,532.12, contributing to a market capitalization decrease of Rs 7,37,744.54 crore, bringing the total to Rs 4,40,72,863.01 crore (approximately $5.24 trillion).
Major Gainers and Losers
Among the 30 stocks in the Sensex, notable laggards included Sun Pharma, NTPC, Reliance Industries, Adani Ports, Power Grid, Tata Motors, Titan, and Tata Steel. In contrast, Mahindra & Mahindra, Tech Mahindra, HCL Technologies, and IndusInd Bank managed to post gains.
Foreign Investor Activity
Data revealed that Foreign Institutional Investors (FIIs) offloaded equities worth Rs 211.93 crore on Friday. October was particularly brutal, with FIIs withdrawing around Rs 94,000 crore (approximately $11.2 billion) from the Indian stock market—the largest monthly outflow to date. This was largely due to the elevated valuations of domestic stocks compared to the attractive pricing of Chinese equities.
Global Market Context
In the broader Asian markets, Seoul, Shanghai, and Hong Kong were trading higher, while US markets closed positively on Friday. Meanwhile, the global oil benchmark Brent crude rose by 1.56%, reaching $74.24 a barrel.
A Brief Respite for Investors
In a notable moment of celebration, leading stock exchanges BSE and NSE held a special one-hour C’ session on November 1 to mark the Diwali festival and the start of the new Samvat 2081. During this session, the BSE benchmark rose by 335.06 points (0.42%), settling at 79,724.12, while the Nifty gained 99 points (0.41%) to close at 24,304.35.
As markets continue to navigate uncertain waters, investors remain on high alert, closely monitoring global events and market trends that could impact their portfolios.