Why the Indian share market is down today
India's stock indices witnessed a sell-off pressure today. The Nifty 50 opened lower at 24,371 points and fell to an intraday low of 24,368. Meanwhile, Sensex opened with a downside gap at 80,237 before falling to an intraday low of 79,981. However, it recovered and crossed the 80,000 mark later in the day. Experts believe a hotly contested US presidential election, interest-rate decisions in the US and Europe, and disappointing quarterly earnings at home, are fueling the market downturn.
Nifty Bank index also experiences downward trend
The Nifty Bank index also witnessed a downward trend, opening lower at 51,988 points and quickly falling to an intraday low of 51,814. This decline came shortly after the market opened for trading.
'Sell India Buy China' narrative influences market
Ajay Garg, Director and CEO at SMC Global Securities, emphasized the prevailing 'Sell India Buy China' narrative in the market. He observed that foreign institutional investors are continuously selling off their stakes here. Notably, October witnessed a record-breaking outflow, even crossing the peak of the March 2020 market crash. This trend has been driven by Beijing's recent policy moves to bolster its economy, which has led to a massive rally in the Chinese stock market and drawn huge investor interest.
Impact of US polls
Anshul Jain, Head of Research at Lakshmi Shree Investment and Securities, noted that the upcoming US presidential election is impacting the Indian stock market. He said that owing to the closely fought poll, big uncertainty is prevailing in the global market. This is also why the Indian stock market could not sustain itself at higher levels after two days of relief rally.
