Notification
No new Notification messages
Q2 FY'24-25 Results of Top Companies
Reliance, TCS, HDFC Bank & more: Explore key financial highlights from India's top quarterly results.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Diwali Offer: MTF at just 9.99%
Iss Diwali, Investments Ko Karo 4X with our Trade Now, Pay Later (MTF) feature
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

Stock Market Crash: Investors Lose ₹9 Lakh Crore as Sensex, Nifty Sink – Key Reasons

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Synopsis:

Today’s share market features how Paytm can now onboard UPI users, Adani Energy faces SEBI notice, RITES secures ₹454 crore contract, V2 Retail plans 50 new stores, CCI approves Aavas Financiers' acquisition, and FIIs sell while DIIs buy equities.

Indian Stock Market Suffers Major Selloff on October 22

On Tuesday, October 22, the Indian stock market faced a strong selloff, leading to significant declines in major indices. The Sensex dropped 931 points, or 1.15%, to close at 80,220.72, while the Nifty 50 fell by 309 points, or 1.25%, ending at 24,472.10.

Midcap and smallcap stocks were hit the hardest, with the BSE Midcap index plunging by 2.52% and the Smallcap index crashing by 3.81%. This selloff resulted in a significant decrease in overall market capitalization, which dropped from ₹453.7 lakh crore to ₹444.7 lakh crore, wiping out nearly ₹9 lakh crore in a single session.

Only three stocks in the Nifty 50, ICICI Bank (up 0.74%), Nestle (up 0.10%), and Infosys (up 0.04%), managed to close in positive territory. Sector-wise, Nifty PSU Bank (down 4.18%), Realty (down 3.38%), and Metal (down 3%) saw the largest declines. Other sectors like Auto, Media, Consumer Durables, and Oil and Gas also recorded losses of over 2%.

Why did the Market Crash?

Experts attribute this market downturn to several factors, including escalating geopolitical tensions in the Middle East, uncertainty surrounding the upcoming US presidential election, and continued selling by foreign portfolio investors (FPIs). Additionally, unimpressive corporate earnings for the September quarter and high stock market valuations have added to the pressure.

Geopolitical tensions in the Middle East, particularly with the involvement of Hezbollah in attacks on Israeli bases, have kept investors cautious. The close fight in the US presidential election is also causing global market jitters, with the outcome potentially impacting India-US relations.

The Indian stock market's stretched valuations, with the Nifty 50's price-to-earnings (PE) ratio above its two-year average, have prompted profit booking. FPIs have aggressively sold Indian equities, withdrawing ₹82,479 crore in October alone, as investors shift to the Chinese market, which currently offers more attractive valuations.

Lastly, the Q2 earnings for Indian companies have been underwhelming, with corporate recovery rates below expectations, further dampening market sentiment.

Source: Live Mint

Latest Market News

1. Paytm - NPCI grants approval to One97 Communications Ltd (OCL) to onboard new UPI users. The company was earlier barred by RBI from onboarding new users via its Jan 31 order.

2. ⁠Adani Energy gets SEBI's notice over improper investor classification.

3. ⁠RITES secures ₹454-crore turnkey contract in Karnataka.

4. ⁠V2 Retail to open 50 new stores this year, says Akash Agarwal.

5. ⁠CCI approves the acquisition of Aavas Financiers by Aquilo House PTE.

6. ⁠FIIs net sell ₹3,978.61 crore while DIIs net buy ₹5,869.06 crore in equities yesterday,

V2 RETAIL LIMITED

Trade

1152.2510.90 (0.95 %)

Updated - 05 November 2024
1157.50day high
DAY HIGH
1102.10day low
DAY LOW
60144
VOLUME (BSE)

In-Depth Market Insights: Global Outlook, Derivatives & More

US Share Market News

  1. Performance Overview:

    • The S&P 500 closed marginally lower on Tuesday, despite cutting the bulk of losses as traders weighed rising Treasury yields and mixed slate of quarterly corporate earnings.  

  2. Sector-Specific Movements:

    • Uncertainty over the presidential election also weighed, with analysts predicting a tight race between Donald Trump and Kamala Harris. Prediction markets showed Trump’s odds improving over Harris. 

    • Benchmark indices on Tuesday, The S&P 500 fell 0.1% to 5,851.20 points, while the NASDAQ Composite rose 0.2% to 18,572.17 points on Tuesday. The Dow Jones Industrial Average ended flat at 42,924.89 points.

    • The IMF now expects U.S. growth of 2.8% for this year, up 0.2% from a prior forecast on expectations that rising wages and asset prices will underpin stronger-than-expected consumption.  

3. Economic Indications:

  • There wasn't much top-tier data on the economic front, but Treasury yields continued their climb higher from a day earlier as the International Monetary Fund lifted its U.S. growth forecast

  • General Motors in yesterday's session rose 10% after the auto giant reported third-quarter earnings that exceeded analyst estimates, helped by robust revenue growth and improved profitability.

Other Asset Classes

  1. Treasury Yields:

    • The U.S. 10-year Treasury yield rose again on Tuesday after Federal Reserve officials urged caution on the path of interest rate cuts. After jumping 12 basis points on Monday, the yield on the 10-year Treasury rose more than 2 basis points to 4.206%, a level it has not reached in three months.

  2. Currency:

    • The U.S. dollar rose to a fresh 2-1/2 month high on Tuesday, continuing its recent rise on expectations the Federal Reserve will temper its rate cut path, while investors positioned ahead of a tight U.S. presidential election. The dollar index rose 0.04% to 104.05.

  3. Commodities:

    • Gold hit an all-time peak on Tuesday as factors including safe-haven demand, spurred by U.S. election uncertainties and the Middle East war, combined with expectations of further monetary easing to amplify bullion’s surge. Spot gold rose 0.7% to $2,739.81 per ounce.

    • U.S. crude oil futures extended gains on Tuesday after rising nearly 2% in the previous session.

    • Oil prices have bounced back somewhat after selling off steeply last week. Traders increasingly view a supply disruption in the Middle East due to Israel-Iran tensions as unlikely. Brent December contract: $76.04 per barrel up 2.36%.

Asian Markets

  1. General Trends:

    • Asia-Pacific markets trading mixed on today's morning trade with investors awaiting the trading debut of Japan’s subway operator, Tokyo Metro. Economic data that will be coming out of Asia includes September inflation numbers from Singapore.

  2. Specific Index Performance:

    • Japan’s Nikkei 225 traded just below the flatline on Wednesday, with the broad based Topix also down marginally. 

    • South Korea’s Kospi climbed 0.25%, and the small-cap Kosdaq rose 0.51%.

India Market Outlook

  1. GIFT Nifty Projection:

    • Gift Nifty suggests a flat opening for the Indian market amid mixed global cues. Nifty spot bias remains down, it is likely to consolidate in the range of 24250-24600.

  2. Market in Previous Session:

    • Indian stock markets saw a significant decline on Tuesday, with benchmark indices falling by over 1% due to a broad-based sell-off across various sectors, especially financials, oil & gas, and auto stocks. Several factors contributed to the bearish sentiment such as:

    • A sharp increase in US bond yields reduced the attractiveness of Indian assets, as foreign investors favoured safer options, affecting fund flows into emerging markets like India.

    • Ongoing geopolitical tensions, particularly the conflict in the Middle East, have added to investor concerns, creating more market volatility.

    • Weak corporate earnings and continuous selling by foreign institutional investors (FIIs) have further weighed on market performance.

    • The Sensex in yesterday's session was down by 931 points or 1.2% to finish at 80,220, while the Nifty declined 309 points or 1.3% to end at 24,472.

  3. Nifty Short-Term Outlook:

    • The index has formed a sizable bear candle with a lower high and lower low signalling the continuation of the downward bias.

    • Nifty in the process has generated a breakdown below the last 11 sessions trading range (24700-25250) highlighting acceleration of the downtrend and opening up downside towards 24250 levels in the coming sessions being the measuring implication of the last 11 session range.

    • Indexes need to form higher highs and higher lows on a sustained basis to signal a pause in the downtrend. Failure to do so will keep the bias down with resistance placed at 24800-24900 levels. Immediate support is placed at 24300-24250, while key short-term support is placed at 24000-23800 levels being the low of August 2024.  

  4. Intraday Levels:

    • Nifty: Intraday resistance is at 24,580 followed by 24,700 levels. Conversely, downside support is located at 24,370, followed by 24,250.

    • Bank Nifty: Intraday resistance is positioned at 51,450, followed by 51,750, while downside support is found at 50,900, followed by 50,550.

Derivative Market Analysis

  1. Nifty:

    • The highest call OI is positioned at 25000 followed by the 25200 level, whereas the highest put OI is positioned at the 24000 level. 

    • Huge call OI addition was seen at strikes between 24500 and 24800 and put unwinding was seen between 24600 and 24900 indicating stiff resistance at higher levels. Put writers shifted their positions between 24300 and 24400 indicating support at lower levels.

    • According to option chain analysis, a broader range for Nifty is 24000 and 24800.

    • The Nifty put-call ratio is now positioned at 0.73.

  2. Bank Nifty:

    • The highest call OI is positioned at 52500 followed by the 53000 level, whereas the highest put OI is positioned at 51000 followed by the 49500 level. 

    • Huge call OI addition was seen at strikes between 51500 and 52000 and put unwinding was seen between 51500 and 52000 indicating stiff resistance at higher levels. Put writers moved to 50800 indicating support at a lower level.

    • According to option chain analysis, a broader range for Bank Nifty is 51000 and 52000.

    • The Bank Nifty put-call ratio is now positioned at 0.59.

Stay on top of the latest market news with Bajaj Broking’s insights. Our point-to-point expert analysis digs deep into the surface, empowering you with a unique perspective on domestic and global stock market events. Get all the current share market news, including US share market updates in one place and make wise investment decisions.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Frequently Asked Questions

What exactly is the stock market, and how does it work?

Answer Field

The stock market is a platform where investors buy and sell shares of publicly traded companies. It operates through stock exchanges, where supply and demand for securities determine prices.

Why should I consider investing in the stock market?

Answer Field

Investing in the stock market offers the potential for long-term wealth growth, dividend income, portfolio diversification, and ownership stakes in successful companies.

How can I start investing in the stock market?

Answer Field

To begin investing in stocks, individuals can open a brokerage account, conduct research on companies and industries, and start building a diversified portfolio aligned with their investment goals and risk tolerance.

What factors should I consider before investing in stocks?

Answer Field

Important factors to consider include investment goals, risk tolerance, time horizon, market research, diversification, and staying informed about economic and market trends.

What are the risks associated with stock market investments?

Answer Field

Risks include market volatility, liquidity risk, company-specific risks, and the potential for loss of capital. It's essential for investors to assess their risk tolerance and diversify their portfolios accordingly.

How do I stay informed about daily market happenings?

Answer Field

You can stay informed by monitoring financial news websites, market analysis reports, earnings announcements, economic indicators, and utilising real-time market data provided by reliable brokerage platforms.

What is the difference between long-term investing and trading in the stock market?

Answer Field

Long-term investing involves holding stocks for extended periods, typically years or decades, with a focus on capital appreciation and dividend income. Trading involves buying and selling stocks more frequently, often based on short-term price movements.

How can I mitigate risks in the stock market?

Answer Field

Risk mitigation strategies include diversifying your portfolio, setting stop-loss orders, conducting thorough research, avoiding over-leveraging, and maintaining a long-term perspective on investments.

Are there any specific tax implications associated with stock market investments?

Answer Field

Yes, tax implications vary depending on factors such as investment duration, type of account (e.g., taxable brokerage account, retirement account), and realised gains or losses from selling stocks.

Can I invest in the stock market with a small amount of capital?

Answer Field

Yes, many brokerage platforms offer fractional investing or allow investors to purchase partial shares, enabling individuals with limited capital to start investing in the stock market with smaller amounts.

No Result Found

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

8 Lacs + Users

icon-with-text

4.8+ App Rating

icon-with-text

4 Languages

icon-with-text

₹5000+ Cr MTF Book

icon-with-text