The Sensex on Friday crashed by nearly 445 points and the Nifty fell below the uncanny 24,000 mark as Indusland Bank, Mahindra & Mahindra, L&T and ICICI Bank dragged down Indian indices October 25, 2024. Meanwhile, Reliance Industries, HDFC Bank, SBI and NTPC drove further down the market on Friday. And other indices such as Nifty Auto, Bank, Metal, PSU Bank, Realty and Consumer Durables index also fell 2 percent to 3.6 percent due to disappointing second quarter earnings season led by private lender Induslnd Bank and power company NTPC.

On this day, several Indian investors lost a whopping Rs 10 lakh crore in a single day. Additionally, the market capitalization of all companies listed on the BSE fell by 9.8 lakh crore to Rs. 435.1 lakh crore on Friday. And the benchmark BSE Sensex fell 663 points, or 0.83 percent, to end the day below the 80,000 mark at 79,402.

The Sensex fell 662.81 points, ending the day at 79,402.29, while the Nifty fell 218.60 points to close at 24,180.80. Among Nifty-listed companies, only 12 stocks advanced, while 38 stocks declined, reflecting broad-based selling across sectors.

Leading the list of Nifty gainers were ITC, Axis Bank, Bharat Electronics Limited (BEL), Britannia and Hindustan Unilever. Conversely, top losers included IndusInd Bank, Adani Enterprises, Bharat Petroleum Corporation Limited (BPCL), Shriram Finance and Coal India, which faced significant downward pressure.

According to VLA Ambala, co-founder of Stock Market Today, several factors contributed to today’s bearish results.

Ambala said, “The depreciation of the Indian rupee against the dollar is affecting India’s purchasing power and global position. Also, the tepid Q2 results fell short of the expected GDP growth target, making investors cautious.”

She added, “FIIs are also on an aggressive selling spree and have offloaded over Rs 1 lakh crore in 30 days. However, DIIs have offset nearly 94% of this outflow and bought Rs 92,931.54 crore in equity in October. This activity has led to a 7% decline in the Nifty50, and the decline is likely to continue.”

Foreign Institutional Investors (FIIs) have played a key role in recent market volatility, with an aggressive selling spree in the past month.

For medium-term investors, Ambala recommended a cautious approach. “Consider buying in parts near the 50-week EMA with a significant decline,” she suggested, as the market braces for further volatility in the coming sessions.