Devastating Market Crash: Sensex Plummets 1,400 Points, Rs 8 Lakh Cr Wealth Obliterated – Unraveling the Chaos
Indian benchmark indices, Sensex and Nifty, opened lower on November 4, reflecting a downturn spurred by declines in banking, financial, and IT stocks. This sets a volatile course for a week dominated by significant events such as the U.S. Presidential election and the Federal Reserve’s monetary policy meeting. As of mid-morning, the BSE Sensex had dropped by 1,409 points (1.77%) to reach 78,316, and the Nifty50 shed 454 points (1.87%) to stand at 23,850. Consequently, the overall market capitalization of BSE-listed companies decreased by Rs 8.44 lakh crore to Rs 439.66 lakh crore.
Key contributors to the decline were major corporations like Reliance Industries, Infosys, ICICI Bank, HDFC Bank, and Sun Pharma. The market’s downturn is influenced by U.S. election uncertainties, with a tight race between Democratic Vice President Kamala Harris and Republican former President Donald Trump affecting investor confidence due to potential economic policy shifts. Additionally, the Federal Reserve’s upcoming monetary policy decision adds to market tension, with expectations of a rate cut further stirring volatility.
Disappointing Q2 earnings reports from Indian companies have also dampened investor sentiment, signaling challenges in sustaining current market valuations. Rising oil prices, influenced by OPEC+’s decision to delay a planned output increase, further complicate the economic landscape.
Technically, resistance for the Nifty 50 is identified at 24,500, with potential selling pressure if it falls below 24,100. The India VIX, an indicator of market volatility, has surged over 5%, reflecting heightened market anxiety.
The convergence of these factors has positioned investors in a cautious stance, with a recommendation to adopt a “sell on rise” strategy until clearer trends emerge.
Original Story https://www.news18.com/business/markets/sensex-crashes-1100-points-investor-wealth-worth-7-lakh-cr-wiped-out-why-is-market-falling-today-9108241.html
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Publish Date: 2024-11-04 14:18:00
