In the first full trading day festivals, benchmark indices BSE Sensex and NSE Nifty 50 faced high drops to close in red on post-Diwali. The Sensex falls around 941.88 points to close at 78,782.24 while the Nifty also declined by 309 points and closed at 23,995.35. Losses pushed both indices back by more than 1% each. The market lost in all sectors today and Nifty 50 stocks ended in red. Some major losers of today included Hero MotoCorp, Grasim Industries, Bajaj Auto, Adani Ports, and BPCL, with a loss up to 4.25%. Mahindra & Mahindra, Tech Mahindra, Cipla, State Bank of India, and Dr. Reddy's Labs gained up to 2.14%.
Factors Driving the Market Decline
There are several reasons behind this decline today. Anticipation around the upcoming U.S. elections added uncertainty. Scheduled for November 5, 2024, the elections could influence U.S. Federal Reserve policies, potentially affecting interest rates globally. For Indian markets, any shifts in U.S. monetary policy could impact foreign investment and domestic borrowing costs. International oil prices added fuel to the fire. Brent crude futures were up by 1.71%, at $74.35 per barrel, and WTI futures went up by 1.87%, closing at $70.79 per barrel.
India’s volatility index (VIX) which is often referred as the “fear index,” saw a notable increase of 5.01%, reaching 16.70 points. The increase in volatility reflects growing market anxiety because the global and domestic economic landscapes appear uncertain. Broader market indices like Nifty Midcap 100 and Nifty Smallcap 100 also closed lower today, down by 1.31% and 1.98% respectively. Across the board all sectoral indices ended in red, sectors such as OMCs, Realty, and Media losed over 2% due to todays market fall.
After the Muhurat Trading session which held on last Friday on the occation of Diwali marked a positive start to the festive season and markets closed on an upbeat note with Sensex gaining 335.06 points and Nifty rising by 99 points. However, it was short-lived and broader market concerns overshadowed the festive cheer in todays trading session.
Inputs by Agencies
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