Indian Markets Dip Amid US Election Volatility; Nifty, Sensex Take a Hit

Indian stock markets declined on Monday as US election uncertainty heightened global volatility. Nifty 50 and BSE Sensex both saw significant drops. Experts predict continued market fluctuations until election results are finalized, while Chinese and Hong Kong markets surged due to stimulus measures.

Indian stock markets opened lower on Monday amid increased global volatility influenced by the upcoming US Presidential election. The Nifty 50 index started the day at 26,061.30 points, marking a 0.45% decrease or 117.65 points drop, whereas the BSE Sensex fell by 363 points or 0.42%, settling at 85,208.76 points.

Market analysts indicate that October usually brings heightened volatility due to the US election cycle. However, they foresee a market rally post-elections. 'India benefits from rate cuts as a vibrant emerging market. We're entering a historically weak month for US equities, which typically weaken leading up to the Presidential Elections and then rally, regardless of the election outcome,' stated Ajay Bagga, a Banking and Market Expert.

Bagga added, 'This closely contested election promises days or even weeks of uncertainty and possible recounts in key swing states, contributing to market volatility. Brace for a turbulent October but stay invested. It's not going to be a straightforward month.' On the National Stock Exchange, all sectors opened in the red except for Nifty Metal, Nifty FMCG, and Nifty Pharma. Nifty Metal outperformed with a 1.22% surge earlier in the session.

The Nifty 50's top gainers were NTPC, Hindalco, BPCL, JSW Steel, and Tata Steel, while top losers included Hero MotoCorp, Tech Mahindra, Infosys, Nestle India, and ICICI Bank. In Asia, Chinese and Hong Kong markets rallied due to recent stimulus measures in monetary and fiscal policies. Over the past week, China's market capitalization increased by USD 1.3 trillion, and Hong Kong's by USD 500 billion. The Shanghai Composite rose over 5%, and Hong Kong's Hang Seng gained 1.95%.

Conversely, Japanese markets struggled, with the Nikkei 225 index dropping around 5%, attributed to the finalization of Shigeru Ishiba as Prime Minister, who supports the Bank of Japan's policy normalization efforts. (ANI)

(With inputs from agencies.)