New Delhi (The Uttam Hindu): The festive cheer in the stock market following Diwali has abruptly come to an end. After a two-day holiday, trading resumed on November 4, kicking off the week with a decline. While the market opened with a slight drop, both Sensex and Nifty saw a sharp fall within the first 15 minutes of trading. This decline wiped out ₹5.15 lakh crore of investor wealth as both indices experienced heavy selling pressure, with nearly all stocks trading in the red. Sensex has dropped by over 1,000 points, while Nifty has fallen by 330 points. This sudden downturn raises the question: what has cast a shadow over the stock market after Diwali?

What’s Causing the Downturn?

There are multiple reasons behind this sharp decline. The start of the November series has seen a notable dip in IT stocks, contributing to the day’s weak performance. However, the primary driver appears to be the U.S. election and the upcoming U.S. Federal Reserve meeting. The U.S. presidential election, set to occur this week, will have repercussions not only in the U.S. but across global markets. Additionally, the Federal Reserve’s meeting is crucial for investors. At present, BSE Sensex is trading over 1,040 points lower at 78,683, and Nifty is down by 330 points, trading at 23,976. Amidst this decline, the market capitalization of all BSE-listed companies has shrunk by ₹6.8 lakh crore, standing at ₹441.3 lakh crore.

Major companies like Reliance Industries, Infosys, ICICI Bank, HDFC Bank, and Sun Pharma are among the biggest contributors to the Sensex’s 420-point drop. L&T, Axis Bank, TCS, and Tata Motors have also added to the downward trend.

The Uttam Hindu

The Uttam Hindu

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