Nifty 50 faces largest monthly drop since September 2022
In October, the Nifty 50 index saw a significant drop, with a 3.70% decrease in value, making it the largest monthly decline since September 2022. The bears have taken a firm hold on the market, as the index continued its downward trend for the sixth consecutive session on Thursday (October 26). It dipped below the critical 19,000 level for the first time since June 28, 2023.
Disappointing earnings reports and surging Treasury yields impact markets
Following a slump in Asian markets due to a plunge in US tech stocks, after disappointing earnings reports and rising Treasury yields, Indian markets have also been affected. The 10-year US Treasury note climbed above 4.9% for two consecutive trading days, as reported by Trading Economics data. Among the Nifty 50 components, Adani Enterprises, Tech Mahindra, Mahindra & Mahindra, Bajaj Finserv, Hindalco Industries, Bajaj Finance, LTIMindtree, and Eicher Motors experienced the most significant losses.
Sectoral indices performance and positive indicators overshadowed
Axis Bank and HCL Technologies managed to stay in positive territory with slight gains. In terms of sectoral indices, Nifty Realty experienced the most significant drop in today's trading session, falling 3.17%, followed by Nifty Media (down 2.6%), and Nifty PSU Bank (plunging 2.31%). Despite a substantial decrease in crude oil prices from $97 to $89 per barrel, along with strong Q2 FY24 performances by Indian private sector banks, investors have not responded positively to these encouraging signs.
