Stock Market Slump: Investor Worries Rise Amid Earnings and Regulatory Concerns

Indian stock markets faced declines as disappointing earnings and impending regulatory changes impacted investor sentiment. Despite this, monthly SIP investments rose. Market experts highlight negative trends tied to poor Q2 results and upcoming F&O changes. The downturn may continue but offers opportunities in select sectors like banking and telecom.

Domestic stock markets ended Monday on a downturn, marking their third consecutive decline. Investor sentiment remains dampened by poor quarterly earnings and looming regulatory changes, leading the Sensex to shed 52.51 points, closing at 79,433.81. The Nifty also fell 25.10 points, finishing at 24,123.10.

Despite the dip, October saw an increase in monthly SIP investments, rising to Rs 25,323 crore from Rs 24,509 crore in September. The Nifty witnessed mixed results with 19 stocks advancing, 30 declining, and one remaining unchanged. Stocks like Power Grid and Infosys emerged as top gainers, while companies such as Asian Paints and Cipla faced significant losses.

Market analyst Shriram Subramanian of InGovern Research Services attributed the bearish trend to disappointing Q2 results, specifically citing Asian Paints' underperformance. Upcoming F&O regulatory changes, confining expiries to a monthly basis starting November, have added to traders' cautiousness. V K Vijayakumar of Geojit Financial Services highlighted India's bearish short-term outlook, exacerbated by foreign investors redirecting funds to outperforming U.S. markets. However, a potential short-term trend reversal could occur, with certain sectors like banking and telecom offering growth opportunities.

(With inputs from agencies.)