Indian Stock Market Swings: Sensex Rises Amidst Foreign Investor Sell-Off
On a volatile Tuesday, Indian stock indices experienced significant fluctuations, with the Sensex closing at 79,476.63 points, marking an increase of 694.39 points or 0.88%. Despite this rise, the Sensex remains below its all-time high of 85,978 points. The Nifty Bank, Financial Services, Metal, PSU Bank, and Private Bank sectors were the top performers.
Foreign portfolio investors (FPIs) have been selling off stocks, with October seeing the highest-ever monthly sales of Rs 94,017 crore, according to the National Securities Depository Limited. This has contributed to the market’s underperformance, with the Nifty up only 10.36% year-to-date compared to the S&P 500’s 20.45% rise.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that domestic issues are impacting the market, with two-thirds of Nifty 50 companies missing earnings estimates in Q2. This has led to a downward revision of Nifty 50 earnings for FY25 to less than 10% from the previous 15% estimate.
Looking forward, investors are keeping an eye on the US presidential election between Kamala Harris and Donald Trump, as well as the US Federal Reserve’s monetary policy meeting. The earnings of Indian companies will also be closely monitored.
Doubts Revealed
Sensex -: Sensex is a short form for the Bombay Stock Exchange Sensitive Index. It is a measure of the 30 largest and most actively traded stocks on the Bombay Stock Exchange in India.
Foreign portfolio investors -: Foreign portfolio investors are people or companies from other countries who invest money in Indian stocks and bonds. They can influence the stock market by buying or selling large amounts of shares.
Rs 94,017 crore -: Rs 94,017 crore is a large amount of money, specifically 940.17 billion rupees. It represents the total value of stocks sold by foreign investors in October.
Nifty -: Nifty is another stock market index in India, similar to Sensex. It includes 50 of the largest and most liquid stocks on the National Stock Exchange of India.
S&P 500 -: The S&P 500 is a stock market index in the United States. It includes 500 of the largest companies listed on stock exchanges in the US.
V K Vijayakumar -: V K Vijayakumar is a financial expert from Geojit Financial Services, a company that provides investment services in India. He shares insights on market trends and factors affecting the stock market.
US election -: The US election refers to the process where people in the United States vote to choose their leaders, like the President. It can affect global markets, including India’s, because of changes in policies.
Fed meeting -: The Fed meeting is a gathering of the Federal Reserve, which is the central bank of the United States. They discuss and decide on important financial policies that can impact the global economy.