Stock market today: Indian stock market experienced a significant downturn on Friday, with the BSE Sensex plummeting over 700 points and the Nifty50 falling below the 24,150 level. At 12:12 PM, BSE Sensex was trading at 79,402.23, down 663 points or 0.83%. Nifty50 was at 24,146.95, down 252 points or 1.03%.
This decline was primarily attributed to disappointing second-quarter earnings reports from major companies such as IndusInd Bank and NTPC, as well as the ongoing exodus of foreign investors from the Indian market.
The market capitalization of all listed companies on the BSE witnessed a substantial erosion of Rs 7.7 lakh crore, bringing the total market cap down to Rs 436.1 lakh crore, according to an ET report.
Several heavyweight stocks, including IndusInd Bank, M&M, L&T, ICICI Bank, Reliance Industries, HDFC Bank, SBI, and NTPC, were the main contributors to the Sensex’s 445-point decline. Across sectors, Nifty Auto, Bank, Metal, PSU Bank, Realty, and Consumer Durables experienced losses ranging from 2% to 3.6%. The India VIX, a measure of market volatility, surged by 5.9% to reach 14.8.
Why BSE Sensex and Nifty50 have crashed today
Several key factors were responsible for the market selloff:
1) Weak Q2 Earnings
The disappointing second-quarter results from various blue-chip and other companies left investors dissatisfied, putting pressure on the benchmark indices. “The consensus downward revision in FY25 earnings estimates and the weak Q2 numbers have soured sentiment, shifting it to a slightly bearish mode,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2) FII Selling
Foreign institutional investors (FIIs) have been consistently selling Indian shares for the past 19 sessions, redirecting their funds to China due to Beijing’s stimulus measures and relatively cheaper valuations. As of October 24, FIIs had offloaded Rs 98,085 crore from the Indian market.
3) High Bond Yields and Strong Dollar
The elevated 10-year Treasury yield, which remains above 4%, and the strengthening dollar index have negatively impacted the Indian equity market. These factors can trigger foreign fund outflows and increase import costs, ultimately affecting corporate earnings.
4) US Election
The uncertainty surrounding the upcoming US election has added to the market’s concerns. The tight race between former Republican President Donald Trump and Democratic Vice President Kamala Harris for key competitive states has contributed to the market’s volatility.
Rising speculation of a Trump win in certain betting markets has supported US yields and the dollar, driven by the Republican candidate’s inflationary tax and tariff policies.