India’s benchmark indices opened in the red on Tuesday as the too-close-to-call U.S. presidential election kept investors on edge.
Foreign investor outflows further weighed on the markets. The BSE Sensex dropped 240 points, or 0.13%, to 78,542.16, while the Nifty 50 fell 78 points, or 0.06%, opening below the 24,000 mark at 23,916.50.
Market analysts attributed the volatility to several upcoming global events, including the U.S. election and the Federal Reserve’s decision on interest rates. Additional concerns about China’s anticipated economic stimulus and geopolitical tensions in the Middle East also contributed to investor anxiety.
Ajay Bagga, a banking and market expert, pointed out the heightened risks this week. “It’s the final stretch of a very polarizing U.S. election,” Bagga said. “With the election results, the FOMC rate decision, and China’s Standing Committee meeting, this week is packed with uncertainties. Domestic institutional investors can’t absorb another month of significant FII outflows, so it’s prudent to stay cautious.”
Sector-wise, most indices on the National Stock Exchange started in negative territory, with Nifty Media and Nifty Oil & Gas each declining by 0.4%. However, Nifty Metal bucked the trend with gains.
On the Nifty 50, top performers included HCL Tech, Tata Steel, and Dr. Reddy’s, while BPCL, Power Grid, Titan, and BEL led the declines.
In broader Asian markets, Japan’s Nikkei saw a positive start with a gain of over 1%, while the Hang Seng climbed 0.47% in early trade. Taiwan’s index was up 0.27%, while South Korea’s KOSPI edged down 0.3%, reflecting mixed sentiment across the region.
(With ANI input)