On October 14, the Indian stock market closed with a decline for the second consecutive day. The Sensex fell by 297 points to settle near 82,000, and the Nifty dropped by more than 100 points to close at 25,122. After a day of volatility, selling pressure dominated the market, leading to significant declines in midcap and smallcap shares as well.
Stock Market Today: On Monday, October 14, the Indian stock market closed in the red. Despite an early rally, selling pressure prevailed in the latter half of the day. The Sensex fell by 297 points to approximately 82,000, and the Nifty dropped by 100 points to close at 25,122. Domestic investors adopted a cautious stance despite US-India trade talks and strength in global markets. Nifty Bank, Midcap, and Smallcap indices also registered sharp declines.
Strong Start, But Selling Pressure Reversed the Mood
In morning trade, the market witnessed a slight upside. The BSE Sensex opened with a gain of 246 points at 82,573.37, while the NSE Nifty also touched the 25,310.35 level with a gain of 83 points. This early session rally did not last long. Due to profit-booking by investors and weak cues from foreign markets, the market sentiment gradually reversed.
By afternoon trade, the Sensex had fallen by more than 350 points. At the end of the day, the Sensex closed around 82,000 points, down by 297 points. The Nifty also registered a fall of more than 100 points, closing at 25,122.
Broader Market Also Witnessed Pressure
Not just the Sensex and Nifty, but the broader market also witnessed selling. Nifty Bank closed with a decline of approximately 145 points. The Nifty Midcap index registered a significant fall of around 435 points, while the Nifty Smallcap index slipped by more than 160 points. Investors booked profits in mid and smallcap shares, which increased losses in these segments.
Why Did the Market Fall?
Analysts believe that this market decline was due to both global factors and domestic selling. There was optimism among investors regarding the India-US trade talks, but volatility in US markets and the strengthening dollar weakened domestic sentiment. Additionally, valuations in some sectors had reached high levels, leading investors to decide to book profits.
Furthermore, fluctuations in bond yields and a surge in crude oil prices also impacted the Indian market. This made foreign investors cautious, and they began capital withdrawal, which increased pressure on the market.
Which Sectors Remained Weak
Throughout the day's trading, the auto, banking, and IT sectors remained under the most pressure. Nifty Bank, PSU Bank, and Private Bank indices registered declines. Selling pressure was also observed in auto shares. On the other hand, the FMCG and Pharma sectors showed slight strength, but it was not enough to curb the market's fall.
In the IT sector, heavyweight stocks like Infosys and TCS saw declines. In banking, shares of HDFC Bank, ICICI Bank, and Axis Bank added pressure to the index.
Top Gainers and Losers
During the day's trading, some stocks showed strength while many heavyweight shares slipped into the red.
Among the top gainers were FMCG shares like Hindustan Unilever, Nestle India, Dr. Reddy's Lab, and Britannia. The shares of these companies showed resilience even amidst the market decline.
The top losers included Tata Motors, HDFC Bank, Reliance Industries, SBI, and TCS. Shares of these major companies registered a fall of 1 to 3 percent.
Significant Decline in Investor Wealth
Two consecutive days of decline have impacted investor wealth. The total market capitalization of companies listed on the BSE has decreased, and investors have suffered losses worth thousands of crores of rupees. Market experts believe that market volatility will continue for now, and investors will have to trade cautiously.
