Continued FII selling drags market down 1% amid weak sentiment

The Indian benchmarks Sensex and Nifty saw significant declines on Monday, with banking, financial, and IT stocks leading the losses. Broad-based selling intensified, positioning the indices for one of their toughest sessions in a month, as volatility surged ahead of the US presidential election and speculation rose around further rate cuts by the Federal Reserve,noted experts.
At the close, the Sensex fell by 1.18 percent or 941.88 points to 78782.24, while the Nifty dropped 1.27 percent or 309 points to 23995.35. 
Cipla, Tech Mahindra, M&M were the top gainers on the Nifty, while losers included Hero MotoCorp, Bajaj Auto, Sun Pharma.
On the sectoral front ,all sectoral indices traded with losses of over a percent or more. The Nifty Realty, Nifty Metal, Nifty Media and Nifty Oil & Gas indices were the worst hit, falling over 2.5 percent each as investors fled their holdings.Broader indices also declined, with the BSE MidCap and SmallCap indices down by 1.3 percent and 1.65 percent, respectively.
Rupee Close:
On 4th Nov'24,the Indian rupee fell 4 paise to a record low of 84.11  against the US dollar, tracking a weak trend in domestic equities and relentless foreign capital outflows. Forex traders reportedly stated the Indian rupee touched new all-time lows weighed down by negative domestic markets which fell nearly 1.18 per cent. A recovery in crude oil prices and FII outflows also dented investor sentiments.However, the softening of the US dollar prevented a sharp fall.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying as expected, India is underperforming its global peers due to excess valuation. The ongoing selloff has deepened by weak Q2 earnings, dampening investor sentiment. Continued volatility is anticipated in the short-term, as attention shifts to the closely contested US presidential election. Additionally, key economic events, such as the US Fed and BoE policy decisions, will be critical in shaping market movements. Market experts have recommended three stocks to buy— Mahindra & Mahindra, ONGC, and ABFRL.

(Business Correspondent)