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The October bloodbath of stock market continues in November with both the major indices Nifty and Sensex tanked more than 1.5 per cent on Monday in mid-session.
The Nifty index declined 445 points or 1.83 per cent to break the 24,000 level and drags to 23,859.10 points while the BSE Sensex declined by 1350 points or 1.69 per cent to slide below 79,000. The experts noted that the continues selling by the foreign investors is still the main reason, however the US elections are also adding fuel to the already volatile markets. "The recent wave of heavy selling in stocks is because of the growing nervousness around the upcoming U.S. elections, the anticipated Federal Reserve meeting, and ongoing selling by Foreign Institutional Investors (FIIs). Additionally, the typically strong festive season sales have shown a tepid performance this year, adding to market concerns" said Vijay Chopra, Market Expert. He added, "Given these uncertainties, retail investors are advised to wait before deploying more capital. The expert recommends focusing on high-quality stocks and avoiding frothy small and midcap stocks that may carry heightened risks in the current environment". In the Nifty 50 list Hero Moto Corp declined more than 5 per cent, Bajaj Auto down by around 5 per cent, Sun Pharma lost 4.44 per cent and emerged in the top losers of the day list at the time of filing this report. The volatility index of NSE also surged 7.86 per cent and indicates that the markets to remain volatile. In the sectoral indices Nifty Media, Nifty Metal, Nifty Realty, Nifty Oil and Gas emerged as top loser segments with a decline of more than 2 per cent. The market experts also noted that this can be a good opportunity for the long term investors to choose some quality stocks. "The selling pressure of October just continues. Also the 4 large IPOs coming out this week will dry up some liquidity. It is expected that these IPOs will receive tepid responses, just like with the Hyundai IPO. The US elections will be watched with some interest" said Shriram Subramanian, Founder and MD, InGovern Research Services. He further added "Retail investors can look into buying into shares of good companies where valuations are reasonable. This market correction is a good opportunity to buy as India's growth path is intact". (ANI)
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