On Tuesday, the stock market started trading with a decline once again, as the Nifty opened down by 79 points at 23,917, while the Sensex dropped by 240 points, reaching the level of 78,542. The Indian stock market is weak due to major global events such as the U.S. presidential election results and the Federal Reserve meeting. Additionally, factors like FII (Foreign Institutional Investors) selling and high valuations are contributing to this downturn.
In early trading within the Nifty 50 pack, counters like Hindalco, JSW Steel, Tata Steel, Sun Pharma, and HCL Tech saw good buying interest. Meanwhile, shares of companies such as Coal India, Adani Ports, BEL, HDFC Bank, and ITC experienced the highest selling pressure. On Monday, the market witnessed a sharp decline, with Nifty breaking the 24,000 level. Due to uncertainty around the outcome of the U.S. presidential election and the likelihood of major changes in global policies, Nifty saw heavy selling on the very first day of the week.
What did experts say?
“Due to several global events, consistent FII selling, and weak results from domestic companies so far, the market is expected to remain bearish. With results from many leading companies in the index scheduled to be announced and stock-specific actions likely in the market, this week will be significant,” said Siddharth Khemka, Head of Research and Wealth Management at Motilal Oswal.
Decline in the U.S. stock market
Following a volatile session, the U.S. stock market closed with a slight decline on Monday. Investors are awaiting major events this week, including the election of the new U.S. president and the Federal Reserve's policy decisions.