Indian stocks continued to face intense selling pressure on Monday, marking the sixth consecutive trading session of decline, underscoring the raising concerns in the market as investors weigh the impact of global geopolitical tensions, particularly ongoing tensions between Iran and Israel, alongside the steady selling from the foreign institutional investors
The Nifty 50 and Sensex both closed today’s session in the red, down more than 0.80% and reaching their lowest levels since mid-August. The Nifty 50 has plunged about 7% since its recent peak, while the Sensex has down roughly 6%.
Furthermore, investors are likely to have profited from the recent market downturn, adding to the downward pressure on market indices. Both indices had their worst weekly performance in two years last week.
The previous month was dominated by global policy developments, with the US Fed embarking on the much-anticipated easing path with a 50 basis point cut in the Fed Funds rate, followed by China’s slew of policy measures announced in a bid to revive its economy and capital markets, which encouraged investors to show greater interest in riskier assets.
However, October has presented fresh concerns for investors, focusing their attention on mounting Middle Eastern tensions, rising crude oil prices, and the potential impact on global trade. Analysts are increasingly concerned that these trends will influence major central banks’ rate reduction at upcoming policy meetings.