New Delhi : In a highly volatile trade, Indian stock indices hovered substantially lower from the previous closing, largely due to sustained selling by foreign portfolio investors.Sensex closed at 78,782.24 points, down 941.88 points or 1.18 per cent, while Nifty closed at 23,995.35 points, down 309.00 points or 1.27 per cent.
Among the sectoral indices, all declined with the Nifty realty being the top loser at 2.93 per cent. At one point during the session, Sensex was about 1,500 points lower, but it was able to pare some of the losses later.
Foreign portfolio investors (FPIs) sold stocks worth Rs 94,017 crore in India through October, suppressing the stock market's overall performance. In the process, they became net sellers in India, after having remained buyers for four months. Important to mention is that the total stocks they sold in India in October were the highest-ever in a month, National Securities Depository Limited data showed.
Lower-than-anticipated earnings by India Inc. also subdued the market, said analysts. Going ahead, investors, both in India and across the world, will be looking at the US election of November 5, being closely contested between the presidential candidates, Kamala Harris and Donald Trump.
Benchmark Sensex has fallen from its all-time high of 85,978 points. "As expected, India is underperforming its global peers due to excess valuation. The ongoing selloff has deepened by weak Q2 earnings, dampening investor sentiment," said Vinod Nair, Head of Research, Geojit Financial Services.
"Continued volatility is anticipated in the short-term, as attention shifts to the closely contested US presidential election. Additionally, key economic events, such as the US Fed and BoE policy decisions, will be critical in shaping market movements," said Nair.
Narinder Wadhwa, MD, SKI Capital, advised investors who were sitting on the sideline, waiting for the correction, to start participating in the market and start selecting their shares.
"There are very good sectors which have come to the fair valuation, which were stretched earlier. They can start purchasing those shares and the investors who are already invested, they can wait for the upside. Going forward, we feel that the market will perform very well," said Wadhwa.