Sensex Plummets 1,192 Points to 78,532.12 in Early Trade Ahead of US Elections

New Delhi: On Monday morning, the equity markets experienced a significant downturn, with the BSE Sensex dropping a staggering 1,192 points, leading to a considerable loss in investors' wealth amounting to Rs 7.37 lakh crore.

The decline in the markets was primarily triggered by weaker performances from major corporations like Reliance Industries and ongoing selling by foreign investors. Additionally, investor sentiment was cautious as they awaited the outcomes of the upcoming US presidential elections and the Federal Reserve's interest rate decision, which is set to be announced later this week.

During early trading, the BSE benchmark index fell to 78,532.12, reflecting the overall adverse market conditions.

The current market conditions led to a drop in market capitalization for BSE-listed companies, which fell by Rs 7,37,744.54 crore, bringing the total to Rs 4,40,72,863.01 crore (approximately USD 5.24 trillion).

From the 30-share Sensex index, key underperformers included Sun Pharma, NTPC, Reliance Industries, Adani Ports, Power Grid, Tata Motors, Titan, and Tata Steel.

Conversely, some companies like Mahindra & Mahindra, Tech Mahindra, HCL Technologies, and IndusInd Bank managed to record gains amidst the market slump.

Recent data indicated that Foreign Institutional Investors (FIIs) sold equities worth Rs 211.93 crore last Friday. The trend of selling has been pronounced this month, with FIIs withdrawing an unprecedented Rs 94,000 crore (about USD 11.2 billion) from the Indian stock market in October. This has marked the month as the worst for outflows, attributed to the inflated prices of domestic shares and the appealing valuations of Chinese stocks.

In the broader Asian market, indicators from Seoul, Shanghai, and Hong Kong showed some growth.

On a positive note, US markets concluded positively on Friday.

The global oil benchmark, Brent crude, saw an increase of 1.56 percent, reaching USD 74.24 a barrel.

In celebration of Diwali, leading stock exchanges BSE and NSE conducted a special one-hour 'Muhurat Trading' session on November 1, thus initiating the new Samvat year 2081. During this session, the BSE benchmark appreciated by 335.06 points or 0.42 percent, closing at 79,724.12, while the Nifty index saw a rise of 99 points or 0.41 percent to finish at 24,304.35.

Sensex, Investors, Markets