Indian stock markets, including the Sensex and Nifty, are experiencing a downturn driven by a combination of elevated crude oil prices, escalating geopolitical tensions, and investor apprehension ahead of the crucial US Federal Reserve policy decision this week.
Photograph: Danish Siddiqui/Reuters
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian benchmark indices, Sensex and Nifty, saw significant declines in early trading, with Sensex dropping over 500 points.
- Elevated crude oil prices and escalating geopolitical tensions are major factors contributing to the negative investor sentiment.
- Uncertainty surrounding the US Federal Reserve’s upcoming policy decision, expected to keep interest rates unchanged, is also impacting global and domestic markets.
- Analysts suggest a hawkish shift from the Fed could strengthen the dollar and constrain foreign portfolio flows into emerging markets.
- Major laggards among Sensex firms included Asian Paints, Bajaj Finance, Hindustan Unilever, and Reliance Industries.
Benchmark equity indices Sensex and Nifty fell in early trade on Monday amid elevated crude oil prices due to geopolitical uncertainties and caution ahead of the US Federal Reserve’s policy decision later this week.
The 30-share BSE Sensex dropped 536.30 points to 72,583.86 in early trade.
The 50-share NSE Nifty fell 200.10 points to 22,402.80.
Winners and Losers on Dalal Street
From the 30 Sensex firms, Asian Paints, Bajaj Finance, Hindustan Unilever, Infosys, Bajaj Finserv and Reliance Industries were among the major laggards.
Kotak Mahindra Bank, Sun Pharma, Adani Ports and Axis Bank were the winners.
How Global Markets Impacted Indian Equities
In Asian markets, South Korea’s Kospi, Japan’s 225 index and Shanghai’s SSE Composite index quoted lower, while Hang Seng index traded in positive territory.
The US markets ended lower on Friday.
Analyst Outlook and Fed Policy Impact
“Indian equities are likely to remain under pressure as elevated crude oil prices, escalating geopolitical tensions and uncertainty over the US Federal Reserve’s policy outlook weigh on investor sentiment.
“The continuing stand-off in the Middle East, with the risk of further escalation, remains a key concern for domestic markets,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
The Federal Reserve’s October 27-28 policy meeting will be a key event for global markets this week, he said.
“Although the central bank is widely expected to leave interest rates unchanged, investors will look for signals on the future policy path.
“Any hawkish shift in tone could keep US Treasury yields elevated, strengthen the dollar and constrain foreign portfolio flows into emerging markets.
“Conversely, a more measured outlook could offer some relief to risk assets,” Ponmudi added.
Brent crude, the global oil benchmark, traded 2.14 per cent lower at USD 114.2 per barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 887.65 crore on Friday, according to exchange data.
