Indian stock indices, the Sensex and Nifty 50, opened on a weak note on November 4, down about 1% each as they kicked off a week laden with key events, including the U.S. Presidential election and Federal Reserve’s policy decision. Heavy selling in major stocks like Reliance Industries, Infosys, HDFC Bank, and ICICI Bank contributed to the decline, reflecting investor caution amid global uncertainties.
At 9:45 am, the Sensex was down 781.26 points or 0.98% at 78,942.86, and the Nifty 50 was down 249.80 points or 1.03% at 24,054.50. Market breadth was notably weak, with 2,237 stocks declining, 999 advancing, and 134 remaining unchanged on the Bombay Stock Exchange (BSE).
The U.S. Presidential election on November 5 is top of mind for investors this week, with significant implications for global policy. This is followed by the Federal Reserve’s monetary policy meeting on November 7, where another rate cut is anticipated. Coupled with uncertainty over the anticipated stimulus package from China’s parliament, investor sentiment remained cautious.
Oil prices rose nearly 2%, with OPEC+ signaling a delay in its planned production increase due to lower demand and increased output from non-OPEC sources, adding to the volatile market backdrop.
India’s ‘fear gauge’—the India VIX—spiked over 5%, passing the 16-point mark, reflecting market apprehension. Broader indices like the BSE Smallcap and BSE Midcap also saw pressure, trading around 1% lower.
Major losers were Bajaj Auto, which shed nearly 5% after the company reported a decline in October domestic sales, while Sun Pharma declined close to 4% due to a setback from a US court regarding its drug launch. RIL, ICICI Bank, and Infosys were other losers that pulled the market down. Resistant stocks were M&M, Tech Mahindra, Cipla, and HCLTech, all up 1-2% each.
All the sectoral indices traded deep in the red, with auto, banking, pharma, infrastructure, energy and realty stocks each falling 1-2 per cent. Technically, Nifty 50 is resisting at 24,500. Hence, said experts, a breakout above this point can also drive the index towards 24,800.
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Source: Moneycontrol
News Desk
