Market Volatility: Sensex Drops Over 900 Points Amid US Election Uncertainty

The Indian stock market faced significant turbulence on Monday, with the Sensex plummeting by over 900 points, reflecting growing concerns regarding the impending US presidential election results and the upcoming monetary policy meeting of the Federal Reserve.

After a steep decline that saw the index drop more than 1,300 points in early trading, there was a slight recovery as the session progressed, although the overall trend remained bearish.

The Bombay Stock Exchange (BSE) Sensex closed at a loss of 941.88 points, marking a decline of 1.18 percent, while the National Stock Exchange (NSE) Nifty ended the day at 23,995.35, down 309 points or 1.27 percent.

The mid and small-cap sectors experienced a drop of around 2 percent each.

Notably, the Nifty Bank index decreased by 458.65 points, settling at 51,215.25.

The Nifty Midcap 100 index closed at 55,784.55 after a fall of 711.50 points, or 1.26 percent, while the Nifty Small Cap 100 index experienced a slight uptick of 370.25 points, closing at 18,424.65.

Sector-wise, heavy selling was observed across various industries, including real estate, energy, media, infrastructure, and commodities.

In addition, sectors such as automotive, financial services, fast-moving consumer goods (FMCG), and metals also registered losses of about 1 percent.

Negative Market Sentiment: Sensex Declines With 2,705 Stocks Lower; M&M & Tech Mahindra Gain

Overall market sentiment was notably negative. Of the stocks traded on the BSE, 1,357 ended in positive territory, while 2,705 stocks faced declines, and 137 remained unchanged.

Major contributors to the Sensex decline included Reliance, Sun Pharma, Bajaj Finserv, NTPC, Tata Motors, Axis Bank, Titan, Power Grid, Tata Steel, and Bharti Airtel. Conversely, M&M, Tech Mahindra, SBI, HCL Tech, Infosys, and IndusInd Bank emerged as the top gainers for the day.

The market capitalization of the BSE took a hit, falling by nearly Rs 6 lakh crore to Rs 442 lakh crore as a result of the downturn. Analysts indicate that the Nifty’s drop below the 24,000 mark signals a breakdown from a recent consolidation pattern.

They anticipate that sentiment may remain weak in the short term unless the index decisively surpasses the 24,100 level.

Looking ahead, market experts warn of the potential for further declines towards 23,650 and below.

However, a decisive move above 24,100 could pave the way for a rally towards 24,500.

Investors are now focusing on the US Federal Reserve’s policy announcement scheduled for 7 November, which is likely to provide further clarity on the global economic outlook.

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