Sensex Sinks 1,192 Points, Investors' Wealth Drops By Rs 7.37 Lakh Cr
Reliance, foreign selling pressure weigh heavy ahead of US fed decision
Investor wealth took a major hit on Monday as the BSE Sensex plunged 1,192 points to 78,532.12 in morning trade, resulting in an erosion of Rs 7.37 lakh crore. The sharp drop was led by heavyweights like Reliance Industries and continued foreign selling, as investors grew cautious ahead of this week’s US presidential election and Federal Reserve interest rate decision.
The total market capitalisation of BSE-listed companies declined to Rs 4,40,72,863.01 crore (USD 5.24 trillion). Key laggards in the Sensex pack included Sun Pharma, NTPC, Reliance Industries, Adani Ports, Power Grid, Tata Motors, Titan, and Tata Steel. Mahindra & Mahindra, Tech Mahindra, HCL Technologies, and IndusInd Bank showed gains.
According to exchange data, Foreign Institutional Investors (FIIs) sold Rs 211.93 crore in equities on Friday, contributing to the pressure. October marked the worst-ever month for foreign outflows, with FIIs pulling out Rs 94,000 crore (approximately USD 11.2 billion) amid high valuations in Indian stocks and more attractive prices in Chinese equities.
In Asian markets, Seoul, Shanghai, and Hong Kong traded higher on Monday, while US markets closed in positive territory on Friday. Brent crude also surged 1.56 per cent to USD 74.24 per barrel.
Last week, Indian stock exchanges BSE and NSE marked the beginning of Samvat 2081 with a one-hour special Muhurat Trading session for Diwali on November 1, where the Sensex rose 335.06 points (0.42 per cent) to close at 79,724.12, and the Nifty climbed 99 points (0.41 per cent) to 24,304.35.
