Indian stocks continue to register losses; Sensex slips over 500 points
Oct 31, 2024
New Delhi [India], October 31 : Stock indices closed significantly lower on Thursday, as foreign portfolio investors (FPIs) continued to offload assets in India, paired with lower-than-expected July-September earnings from India Inc.
The Sensex settled at 79,389.06 points, down 553.12 points or 0.69 per cent, while the Nifty closed at 24,205.35 points, down 135.50 points or 0.56 per cent. Among sectoral indices, the majority were in the red, with Nifty IT declining the most by 3.03 per cent.
In October, FPIs have sold over Rs 91,000 crore worth of Indian stocks, marking the worst-ever month for fund outflows. Notably, FPIs had been net buyers over the previous four months, fuelling the recent bull run in the stock market.
"Early weakness in IT majors weighed on sentiment, with other sectors joining the decline later in the session. However, resilience in select heavyweight stocks helped limit the overall losses," said Ajit Mishra, SVP, Research, Religare Broking Ltd.
"Despite the negative trend in benchmark indices, there are notable opportunities in certain sectors. Traders should adjust their strategies accordingly, focusing on risk management," Mishra added.
Vinod Nair, Head of Research at Geojit Financial Services, noted, "The key benchmark indices traded with mild losses while experiencing a broader sell-off in the technology sector due to weakness in US IT companies, which has cast a shadow on domestic IT firms. Investors remain cautious given the weak Q2 domestic earnings."
Regular trading will not take place on Friday due to a market holiday. However, stock exchanges in India will be open for a special one-hour session, known as Muhurat trading, from 6 pm to 7 pm, with the pre-market opening at 5:45 pm. The tradition of Muhurat trading dates back centuries, with the belief that investments made during this auspicious time will bring good returns.
"Our data analysis over the past 10 years shows that markets have closed in the red only three times during the Muhurat trading session. This suggests potential festive cheer in upcoming trading sessions," said Vikram Kasat, Head of Advisory, PL Capital - Prabhudas Lilladher.
