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Post-Diwali Stock Market Crash: Sensex and Nifty Plunge, Major Losses for Investors

Investors react to steep losses in Sensex and Nifty post-Diwali, with Sensex down over 1,000 points and Nifty dropping 313 points, causing widespread concern in the stock market.

Stock Market

The stock market faced significant pressure on Monday, with Sensex plunging nearly 1,000 points and Nifty dropping 313 points within the opening hours. Investors returning from the Diwali long weekend were met with a sharp market downturn as Sensex opened at 79,713.14 but quickly dropped to 78,719. Meanwhile, Nifty, which opened at 24,315.75, fell to 23,990.

The sell-off hit nearly all sectors, including auto, banking, and consumer stocks, with oil and gas shares down by 2.47% and media stocks falling by 2.66%. Out of the top 30 BSE stocks, 25 traded in the red. Reliance Industries, Sun Pharma, Infosys, ICICI Bank, and HDFC Bank were among the top contributors to the market's downward trend, dragging BSE's market cap down by ₹8.44 lakh crore to ₹439.66 lakh crore.

Global and Domestic Pressures Several factors contributed to the market’s decline. A significant pullback by foreign institutional investors (FIIs) in October, withdrawing a record ₹94,000 crore due to high valuations in Indian equities and attractive valuations in Chinese stocks, has put additional strain on the market. Further global concerns include the upcoming U.S. elections on November 5, the Federal Reserve meeting on November 7, and increased oil price volatility due to geopolitical tensions. Brent crude rose 1.49%, adding pressure on stocks like Reliance.

In addition, OPEC+ postponed its planned production increase due to weakened demand, causing a rise in oil prices. Weak Q2 results for several companies have further dampened investor sentiment, prompting increased sell-offs.

Investor Impact and Sector-Wide Declines Across all sectors, losses continued with significant drops in finance, auto, banking, and consumer stocks. Only two BSE top 30 stocks showed gains, with Mahindra & Mahindra rising by 2.39%, while Sun Pharma dropped 4%. The market's volatility underscores ongoing concerns, with heightened caution as global events and economic uncertainties unfold.

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