Mumbai (Maharashtra) [India], October 23 : The stock market experienced a sharp decline today, with market indices failing to reach the green territory.
The Sensex plummeted by 825.74 points, closing at 64,571.88. Similarly, the Nifty was down by 260.90 points, concluding the day at 19,281.75.
Among the Nifty companies, only two managed to make advances, while 48 witnessed declines.
Notable performers included M&M and Bajaj Finance, which emerged as the top gainers. Conversely, LTIMindtree, Adani Enterprises, Hindalco, JSW Steel, and Adani Ports found themselves among the top losers at the time of market closing.
Varun Aggarwal, founder and managing director, Profit Idea, said "US and European markets fell up to 1.5 per cent due to escalating geo-political tension in the Gulf region. Indian market coupled with global markets and closed 1.34 per cent minus. But a drastic fall is seen in mid- and cap stocks. The cap index closed 2.66 per cent and the Small Cap Index closed 3.59 per cent down respectively. India Vix shot up .74 per cent to 10.90".
The fall in the Indian market was mirrored in US and European markets, which tumbled by up to 1.5 per cent. This decline was attributed to escalating geo-political tensions in the Gulf region.
As a result, the Indian market joined its global counterparts and ended 1.34 per cent in the red.
One notable aspect of the day's trading was the substantial fall in Mid and small-cap stocks. The Mid Cap index closed at 2.66% down, while the Small Cap Index plummeted by 3.59 per cent.
Aggarwal said, "Due to rising tensions and the US supporting Israel, the market is sensing this to become bigger and the market doesn't like this uncertainty. Nifty continued to witness support at 18887. Indian investors should see this fall as an opportunity to invest in quality stocks. Nothing to worry about in the medium term. We continue to remain bullish on India despite severe correction today. IT, Metal, Media, Banks, and FMCG sectors continue to look good. Risk-defined strategies are best for traders. Investors should look to accumulate quality stocks in a staggered manner on dips".
The India VIX, reflecting market volatility, rose by 0.74 per cent to 10.90.
The market's abrupt decline was largely driven by growing global tensions and the United States' support for Israel. These factors have created uncertainty in the market, leading to widespread concerns among investors.
However, analysts have noted that the market remains supported at the 18,887 mark and Indian investors should perceive this fall as an opportunity to invest in quality stocks.
Despite the severe correction seen today, there is no cause for alarm in the medium term. Analysts continue to remain bullish on India, especially in the IT, Metal, Media, Banks, and FMCG sectors.
For traders, risk-defined strategies are recommended, while investors are advised to accumulate quality stocks incrementally during market dips.
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