Indian stock markets faced yet another challenging session on Monday, as the BSE Sensex plunged by 1,350 points, or 1.69%, and the Nifty index dropped 445 points, or 1.83%, breaking below the 24,000 mark. As of midday, the Sensex hovered below 79,000, while the Nifty rested at 23,859.10, both experiencing their most significant losses since October’s market turbulence.
Market analysts attribute these sharp declines to ongoing Foreign Institutional Investor (FII) selling, which has intensified as the U.S. presidential election approaches, adding further uncertainty to already fragile global markets. The upcoming Federal Reserve meeting and weaker-than-expected festive season sales have also contributed to investor caution.
“The recent wave of heavy selling in stocks is because of the growing nervousness around the upcoming U.S. elections, the anticipated Federal Reserve meeting, and ongoing selling by Foreign Institutional Investors (FIIs). Additionally, the typically strong festive season sales have shown a tepid performance this year, adding to market concerns” said Vijay Chopra, Market Expert.
Key stocks were hit hard, with Hero MotoCorp and Bajaj Auto each falling by around 5%, while Sun Pharma dropped 4.44%. The NSE’s volatility index surged by nearly 8%, signaling more choppy days ahead. Sector indices also declined, with Nifty Media, Nifty Metal, Nifty Realty, and Nifty Oil & Gas each dropping over 2%.
(ani)
