The stock market today saw a huge crack-down at the close of the day, with the twin indices at the BSE Sensex and Nifty showing massive losses. The BSE index slid by over 900 points, while the Nifty fell below the 24,500 mark, marking an erratic day for Indian equities.
At 3:10 PM, Sensex plunged by 902 points, or 1.11%, to 80,249, and Nifty succumbed to a fall of 1.25%, losing 310 points at 24,471. The sharp fall at both Sensex and Nifty deprived the market of its nearly Rs 8.9 lakh crore in market capitalization, which clearly signifies how turbulent today’s market has been.
Factors Affecting Stock Market Today: Sensex and Nifty in Pressure Zone
This led to an increase in the stock market today mainly due to profit booking after a strong rally witnessed in the recent sessions. The analysts claimed that the share market was seen witnessing the Sensex and as well as Nifty dip today as there is huge profit-taking going on, which had been spurred by high market valuations. Market experts predict possible corrections and hence Sensex and Nifty saw their reaction to both local and global economic cues.
FII selling hits the stock market today
The greatest spoiler for the downward slide in the equity market today has been sustained selling by FIIs, seeming to be making the Sensex and as well as Nifty take the downward road.
FIIs have been selling at record levels, offloading Rs 88,244 crore worth of shares alone in October, putting pressure on both indices. The FII selling thus caused appears to be balanced out to a certain extent only by DIIs and not sufficiently to prevent the Sensex and the Nifty from sliding.
Global Markets Add to the Woes of Securities Market Today
Again echoing the woes of the stock market, poor Asian market performances also reflected poorly on the Sensex and as well as Nifty. Japan’s Nikkei and South Korea’s Kospi witnessed jarring dips that went through their due share of reverberations in Indian equities. The stock market today saw heavy selling pressure as Sensex and Nifty followed the global trends downwards.
As the volatile nature of the stock market continues to gain momentum, analysts believe that Sensex and Nifty are unlikely to recover in the short term. Corrections remain in the pipeline.
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