Market Turmoil: Nifty and Sensex In Freefall Amid Global Worries

The stock market continues its plunge into November as Nifty and Sensex drop significantly. Key factors include foreign investor sell-offs, U.S. election uncertainties, and poor festive sales. Experts suggest cautious investments focusing on high-quality stocks, seeing market correction as a buying opportunity for long-term growth.

The October downturn in the stock market is showing no signs of easing as November trading begins with both Nifty and Sensex posting notable declines. In Monday's mid-session, the Nifty index tumbled 445 points, breaking the 24,000 barrier, settling at 23,859.10 points. Meanwhile, the BSE Sensex plummeted by 1,350 points, falling below 79,000.

Experts attribute the ongoing sell-off primarily to foreign investors, with the added pressures of the approaching U.S. elections intensifying the situation. Vijay Chopra, a market expert, stated, "The heavy stock selling is fueled by uncertainty surrounding the U.S. elections, the upcoming Federal Reserve meeting, and consistent activity by Foreign Institutional Investors. Furthermore, the weak festive season sales contribute to market anxiety."

Retail investors are advised to await stabilization before further investment, focusing on robust stocks while steering clear of risky small and midcap stocks, Chopra advises. The Nifty 50 list saw significant losses on Monday, with Hero Moto Corp, Bajaj Auto, and Sun Pharma among the top decliners.

The NSE volatility index rose by 7.86%, signaling continued market turbulence. Sectoral indices for media, metal, realty, and oil and gas sectors are among the worst hit, each declining by over 2%.

Market observers suggest this market dip might provide an advantageous entry point for long-term investors seeking quality stocks. Shriram Subramanian, Founder and MD of InGovern Research Services, highlighted that the market's liquidity might further tighten with four major IPO launches planned for the week. He notes these may garner lukewarm interest, similar to the Hyundai IPO, with U.S. elections remaining a focal point of investor sentiment.

Subramanian recommends that retail investors consider investing in sound companies at reasonable valuations, viewing the market correction as a strategic opportunity as India's growth trajectory remains solid, according to ANI.

(With inputs from agencies.)