India’s benchmark indices tumbled on Monday, with the Sensex shedding 941.88 points, or 1.18% to close at 78,782.24, while the Nifty dropped 309.13 points, or 1.27%, to 23,995.35.
The session was marked by high volatility, as the Sensex briefly plummeted by over 1,500 points before regaining some ground by the close.
All major sectoral indices ended in the red, with the Nifty Realty index suffering the steepest loss at 2.93%. Persistent selling by foreign portfolio investors (FPIs) was a key driver of the market downturn.
Data showed that FPIs sold a record Rs 94,017 crore worth of Indian stocks in October, marking the highest-ever monthly outflow. This shift reversed their status as net buyers over the previous four months, putting pressure on Indian equities.
Weak quarterly earnings from several companies also dampened investor sentiment.
“India is underperforming its global peers due to high valuations, compounded by weaker Q2 earnings that are dampening confidence,” said Vinod Nair, Head of Research at Geojit Financial Services.
He added that global uncertainties, including the upcoming U.S. presidential election and policy decisions from the U.S. Federal Reserve and the Bank of England, are likely to keep markets volatile.
Investors, both global and domestic, are closely watching the U.S. elections, which begin on November 5. Analysts expect that the new U.S. administration’s economic policies and foreign relations stance could significantly influence global markets, including India.
Narinder Wadhwa, Managing Director of SKI Capital, encouraged investors to start entering the market if they’ve been waiting for a correction.
Despite the recent downturn, Wadhwa said he was optimistic about India’s long-term growth prospects. “While the market may remain turbulent in the short term, there’s considerable upside potential once global and domestic uncertainties begin to clear,” he said.
(With ANI input)