Stock market crash today: The BSE Sensex plunged 942 points to reach a three-month low, while Nifty declined over 1 percent, closing under 24,000. The decline was primarily due to significant selling in Reliance Industries and banking stocks. The BSE Sensex fell 941.88 points (1.18%) to close at 78,782.24, its lowest since August 6. During trading, it dropped as much as 1,491.52 points (1.87%) to 78,232.60. The NSE Nifty decreased by 309 points (1.27%) to 23,995.35.
Major decliners in the Sensex included Adani Ports, Reliance Industries, Sun Pharma, Bajaj Finserv, NTPC, Tata Motors, Axis Bank, and Titan.
The gainers comprised Mahindra & Mahindra, Tech Mahindra, State Bank of India, HCL Technologies, Infosys, and IndusInd Bank.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 211.93 crore on Friday.
Why BSE Sensex, Nifty50 have crashed today
Market analysts attribute the selling pressure to the upcoming US presidential elections on November 5 and anticipated stimulus measures from China to boost its economy. Continuous selling by foreign investors also affected market sentiment negatively.1. The upcoming U.S. presidential election between Kamala Harris and Donald Trump has created uncertainty. The election outcome could influence U.S. Federal Reserve policies and subsequently affect Indian interest rates.
"In the next couple of days markets globally will be focused on the US presidential elections and there can be near-term volatility in response to the election outcome. However, this is likely to be short-lived and economic fundamentals like US growth, inflation and the Fed action will influence the market trend," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
2. The Federal Reserve's November 7 policy meeting adds to market uncertainty, with expectations of a possible rate cut affecting investor behavior.
3. Lower-than-expected Q2 corporate earnings have impacted market sentiment. "The Indian market is facing headwinds from decelerating earnings growth. Nifty EPS growth as indicated by Q2 results may dip below 10% in FY25 which will render the present valuations of about 24 times estimated FY25 earnings, difficult to sustain. FIIs may continue to sell in this difficult earnings growth environment, constraining any rally in the market," said Vijayakumar.
4. Oil prices increased over $1 early Monday after OPEC+ postponed its December output increase. Brent crude, the global oil benchmark, rose 2.57% to USD 74.98 per barrel.
October witnessed the largest-ever monthly outflow as foreign investors withdrew Rs 94,000 crore (approximately USD 11.2 billion) from Indian stocks, driven by high domestic equity valuations and attractive Chinese market opportunities.
A National People's Congress committee meeting in China this week has sparked discussions about potential major government spending initiatives for economic growth.
Asian markets in Seoul, Shanghai, and Hong Kong closed higher, while European markets showed mostly positive trends. US markets ended positively on Friday.
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