Mumbai Markets Dip as Caution Reigns Ahead of US Elections and Fed Decisions
Mumbai: In a rocky start to the week, benchmark equity indices Sensex and Nifty saw significant declines on Monday, pressured by major sell-offs, particularly in Reliance Industries, and a cautious investor sentiment leading up to the US presidential elections and the Federal Reserve’s upcoming interest rate decision.
The BSE Sensex fell sharply by 665.27 points to reach 79,058.85 in early trading, while the NSE Nifty plunged 229.4 points to 24,074.95. This downturn was exacerbated by relentless selling from foreign investors, further dampening market sentiment.
Among the 30-share Sensex pack, key laggards included Sun Pharma, Reliance Industries, Infosys, Tata Motors, Titan, Maruti, and NTPC. Conversely, Mahindra & Mahindra, Tech Mahindra, HCL Technologies, and IndusInd Bank managed to post gains amidst the broader decline.
Data from exchanges indicated that Foreign Institutional Investors (FIIs) offloaded equities worth ₹211.93 crore on Friday alone. This trend has escalated in October, with foreign investors withdrawing a staggering ₹94,000 crore (approximately USD 11.2 billion) from the Indian stock market, marking the month as the worst for outflows. Analysts attribute this to the inflated valuations of domestic equities and the attractiveness of Chinese stocks.
In the Asian markets, however, there were signs of resilience, with Seoul, Shanghai, and Hong Kong trading higher. The US markets also ended positively on Friday, contributing to a mixed global outlook.
On the commodities front, the global oil benchmark Brent crude saw an increase of 1.49%, trading at USD 74.19 a barrel.
In a cultural nod, leading stock exchanges BSE and NSE held a special one-hour ‘Muhurat Trading’ session on November 1 to celebrate Diwali, marking the commencement of the new Samvat 2081. During this auspicious trading period, the BSE benchmark gained 335.06 points (0.42%) to settle at 79,724.12, while the Nifty rose by 99 points (0.41%) to close at 24,304.35.
As investors navigate this period of uncertainty, all eyes will be on upcoming economic indicators and global market trends that could influence future trading decisions.
