As we move closer to the end of 2024, we also progress further into the fiscal year. Currently the markets are in the middle of an earnings season, wherein corporations are releasing results for their performance in the second quarter of FY25 of Q2 FY25.
As we step into November, a look back at the month of October exhibits a period of relative decline in prospects.
Sensex
The marquee indices closed the month in ‘red’. The BSE Sensex, which closed in red on the last day of October, saw a major decline amounting to a massive 5.79 per cent or 4,877.23 points in the span of just a month.
This took the overall value to 79,389.06 points before the special Muhurat trading later on November 1. This figure is miles behind the 52-week high of 85,978.25 points.
Nifty
Things were no different at the National Stock Exchange, as the NSE Nifty was the biggest loser with a cumulative decline of 6.17 per cent or a staggeirng 1,591.55 points.
This drop took the overall value of the index to 24,205.35. Here, the index’s 52-week high stands at 54,467.35 points.
In the process, both the indices dropped below the landmark numbers of 80,000 points (Sensex) and 25,000 points (Nifty).
Nifty Bank
The Nifty Bank, another major index, also saw its value drop in the trade of October. The Nifty Bank dropped to 51,475.35. This came to pass after a decline of 2.73 per cent or 1,447.25 points in a month.
Factors At Play
Some of the prime factors that are being cited by many analysts include the ever-increasing uncertainty on the global scale, thanks to the escalating nature of conflict in the Middle East and Ukraine. This has also impacted the pricing of two of the most important elements, Gold and Crude Oil.
Both these commodities have seen major vacillations in the recent past, as entities look for stable ground in a time of grave uncertainties. In addition, a reported ‘exodus’ of Foreign Portfolio Investments or FPIs from the Indian equity markets is another major development that has affected the prospects of Indian markets.
For better context, FPIs checked out with as much as Rs 85,790 crore from the Indian markets, reportedly looking for better avenues in the Chinese markets that have been recently rejuvenated by an intend of change in policy by the Xi Jinping-led Chinese government.
