Investors lose ₹4L crore as Sensex tanks over 900 points
India's benchmark indices, the Sensex and Nifty 50, witnessed a steep fall today. The downward trend reversed the gains of the previous session. Despite positive movements in Asian markets and record highs on Wall Street, Indian equities fell due to profit-booking and fears of US trade policies under President-elect Donald Trump. The Sensex fell 925 points or 1.15% to 79,453.38 while Nifty fell 288 points or 1.18%, trading at around 24,196.
Market capitalization dips by ₹3.97 lakh crore
The market capitalization of all BSE-listed companies witnessed a sharp decline of ₹3.97 lakh crore, taking the total to ₹448.61 lakh crore. Heavyweights such as HDFC Bank, Reliance Industries, and ICICI Bank were major losers today. The fall comes after Wednesday's 1.1% rise in both Nifty and Sensex, their biggest single-day gain in over six weeks after Trump's US presidential win which analysts deemed good for domestic equities.
Mixed performance among Sensex constituents
Among the Sensex constituents, Bajaj Finserv, Power Grid, UltraTech Cement, ICICI Bank, Nestle India and M&M opened lower. Meanwhile, Tata Steel witnessed a 2% rise after it reported profits for the quarter ending September 2024 as opposed to a loss in the same period last year. Apollo Hospitals's shares also surged by 6% to an all-time high after a 63% YoY increase in net profit to ₹379 crore in Q2FY25.
Sectoral indices open lower, future direction uncertain
Sectorally, Nifty Metal fell 1.3% dragged by Hindalco, Adani Enterprises and Vedanta. Other sectors such as Nifty Bank, Auto, Financial Services, Pharma and Consumer Durables also opened lower. Analysts say while US election results could trigger a market rally for a few sessions, the future course of domestic equities will depend on the policy framework of the next US government and Fed's commentary today on interest rates.
Expert opinions on market trends and future projections
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, advised investors to stick to quality and value during this period of euphoria and uncertainty. He also warned Trump's anti-China policy could have positive implications for India but cautioned against potential tariffs on India's exports to US. Mandar Bhojane, Research Analyst at Choice Broking, suggested if Nifty sustains above 24,500 mark, we could see further upside momentum with targets around 25,000 and a key resistance at 25,400.
