POST MARKET SUMMARY OF STOCK MARKET ON 04th OCT 2024
Today’s market performance saw the SENSEX dropping sharply, primarily driven by global geopolitical tensions and economic factors. The BSE Sensex ended the day at 82,244.25, down by 252.85 points (or 0.31%) compared to yesterday’s closing of 82,497.10. The index saw a massive intraday dip of more than 1,200 points, nearing 82,450 at its lowest.
Key reasons for this market volatility include:
- Geopolitical Tensions: The ongoing conflict between Iran and Israel is a major contributor to market instability. The escalation in missile strikes and retaliatory threats from both nations has caused concern about potential disruptions in the Middle East, especially related to oil supply, leading to rising crude oil prices.
- Foreign Institutional Investors (FII) Outflows: FIIs have been net sellers in the Indian market this year, driven by concerns over high valuations and better opportunities in other markets like China. On October 1, FIIs offloaded shares worth ₹5,579 crore.
- Oil Price Surge: The rising crude oil prices due to the Middle East conflict are further adding to inflationary pressures in India, which negatively impacts sectors like automobiles, real estate, and manufacturing.
- SEBI’s New Rules on F&O Trading: SEBI has introduced stricter regulations to curb speculative trading in the futures and options (F&O) segment. These changes, including raising contract sizes and limiting weekly expiries, are expected to reduce trading volumes by 30-40%, which could be contributing to the cautious sentiment among retail investors.
Overall, these factors are creating a risk-averse environment, resulting in widespread declines across sectors, with Nifty Realty and Nifty Auto both seeing significant losses of 3-4% today.
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