The stock market experienced a significant decline in early trading on Monday as investors adopted a cautious stance in anticipation of the upcoming US presidential elections and the Federal Reserve’s decision on interest rates. The Sensex plummeted by more than 1,000 points, with the Nifty index falling below the 24,000 threshold by 11:45 am. Key stocks such as Reliance Industries, Sun Pharma, Infosys, and Tata Motors were among the primary underperformers within the Sensex, whereas Mahindra & Mahindra, Tech Mahindra, and HCL Technologies managed to record gains.The Sensex, which reflects the performance of the top 30 stocks on the BSE, had reached a high of over 85,000 just a month ago.
In October, Foreign Institutional Investors (FIIs) significantly reduced their equity holdings, with outflows exceeding ₹90,000 crore, marking it as the most challenging month for the market in terms of foreign investment. Recent exchange data indicated that foreign investors sold equities worth ₹211.93 crore last Friday. Meanwhile, other Asian markets, including those in Seoul, Shanghai, and Hong Kong, were showing positive trends, and US markets concluded the previous week on a high note.The United States Federal Reserve is anticipated to reduce its lending rate on Thursday, which would enable central banks in other nations to decrease their interest rates as well. Although the stock market was closed during the regular trading hours on Friday, it reopened for a special Muhurat trading session in the evening to celebrate Diwali. During this one-hour session, the Sensex increased by 335 points, reaching 79,724, while the Nifty rose by 99 points to settle at 24,304.
