Image Source : PIXABAY Sensex opened at 79,713.14 against a previous close of 79,724.12 and crashed nearly 2 per cent to the level of 78,232.60.
In a significant development, the stock market on Monday witnessed a massive decline with both the Nifty and Sensex resuming their downward trajectory after a week of relative stability. As per the updates, both benchmark indices fell as much as 2%, leading to major losses for investors. At around 12:57 pm, the S&P BSE Sensex was down 1,303.19 points at 78,420.93, while the NSE Nifty50 tanked 437.15 points to trade at 23,867.20.Investors lost almost Rs 6 lakh crore in the major stock market crash on Monday.
At the opening of the market, the Sensex opened at 79,713.14 against a previous close of 79,724.12 and crashed nearly 2 per cent to the level of 78,232.60. On the other side, the nifty 50 opened at 24,315.75 against its previous close of 24,304.35 and fell 2 per cent to the level of 23,816.15.
Apart from this, other broader market indices too declined sharply during the session as volatility spiked sharply. Moreover, the smallcap and midcap stocks also declined significantly, signalling the broad-based panic selling on Dalal Street.
In the process, Sensex closed 942 points, or 1.18 per cent, lower at 78,782.24, while the Nifty 50 closed with a loss of 309 points, or 1.27 per cent, at 23,995.35.
5 reasons why Indian stock market fall today
The upcoming US presidential election between Kamala Harris and Donald Trump has created uncertainty in the stock market. The election results may affect the policies of the US Federal Reserve and subsequently affect Indian interest rates. The US presidential election results are expected on November 6.
According to Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, the markets globally will be focused on the US presidential elections in the next few days and there may be volatility in the near term in response to the election results. Hence, the market is witnessing a big decline today.
The Federal Reserve’s monetary policy meeting is on November 7. This meeting has increased uncertainty in the market because the expectation of a possible reduction in interest rates can affect the behavior of investors. Its effect is also being seen on the Indian market today.
Weaker-than-expected company results in Q2 have also dragged down the market. Q2 results indicate that Nifty EPS growth could drop below 10% in FY25, making it difficult to sustain current valuations of around 24 times FY25 estimated earnings.
Foreign investors have been selling heavily in the Indian market for the last one month. Its effect is clearly visible on the stock. Indian markets have fallen rapidly. On the other hand, foreign investors are withdrawing money from here and investing it in the Chinese market, due to which the stock market there has seen a rise.
Oil prices went up more than $1 on Monday after OPEC+ postponed production hikes in December. Brent futures rose $1.18 (1.61%) to $74.28 a barrel, while WTI crude rose $1.20 (1.73%) to $70.69. OPEC+ postponed its planned 180,000 bpd hike due to weak demand and increased non-OPEC+ supply. This also affected the Indian market today.
