Stock Market Update: October 31
On Thursday, stock indices in India closed significantly lower. The Sensex ended at 79,389.06 points, dropping by 553.12 points or 0.69%, while the Nifty closed at 24,205.35 points, down 135.50 points or 0.56%. This decline was largely due to foreign portfolio investors (FPIs) selling off assets and lower-than-expected earnings from Indian companies for the July-September period.
Sectoral Performance
Most sectoral indices were in the red, with Nifty IT experiencing the largest drop of 3.03%. October has been a challenging month, with FPIs selling over Rs 91,000 crore worth of Indian stocks, marking the worst-ever month for fund outflows. Previously, FPIs had been net buyers for four months, contributing to a bull run in the market.
Expert Insights
Ajit Mishra, SVP of Research at Religare Broking Ltd, noted that early weakness in IT majors affected market sentiment, with other sectors following suit. However, some heavyweight stocks showed resilience, limiting overall losses. Mishra advised traders to focus on risk management and explore opportunities in certain sectors despite the negative trend.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted a broader sell-off in the technology sector due to weakness in US IT companies, impacting domestic IT firms. Investors remain cautious due to weak Q2 domestic earnings.
Muhurat Trading
Regular trading will not occur on Friday due to a market holiday, but a special one-hour session called Muhurat trading will take place from 6 pm to 7 pm. This tradition is believed to bring good returns. Vikram Kasat, Head of Advisory at PL Capital – Prabhudas Lilladher, mentioned that markets have closed in the red only three times during Muhurat trading in the past 10 years, suggesting potential festive cheer in upcoming sessions.
Doubts Revealed
Stock Market -: The stock market is a place where people buy and sell shares of companies. It’s like a big marketplace for businesses.
Foreign Investors -: Foreign investors are people or companies from other countries who invest money in Indian businesses. They can affect the stock market by buying or selling shares.
IT Sector -: The IT sector includes companies that work with technology, like making software or providing tech services. In India, big IT companies include Infosys and TCS.
Sensex -: Sensex is a stock market index in India that shows how 30 major companies are doing. It’s like a report card for the stock market.
Nifty -: Nifty is another stock market index in India, but it includes 50 major companies. It helps people understand the overall market performance.
Foreign Fund Outflows -: Foreign fund outflows happen when investors from other countries take their money out of Indian markets. This can cause the stock market to go down.
Muhurat Trading -: Muhurat trading is a special trading session on the Indian stock market during Diwali. It’s considered auspicious and brings good luck for the year ahead.