As of November 5, 2024, the Indian stock market is facing significant challenges, with the BSE Sensex closing at 78,432.99, down 349.25 points (0.44%), and the Nifty 50 index dropping to 23,906.35, down 89 points (0.37%). This marks a continued decline, with the Nifty falling below 24,000 for the first time since August 5, 2024. Investor caution is heightened ahead of the U.S. presidential election and the upcoming Federal Open Market Committee (FOMC) meeting scheduled for November 6-7, which has contributed to a bearish sentiment across all sectors. [eb2426b1]
The market's downturn has been exacerbated by major players in the market, including Reliance and ICICI Bank, which have been among the top drags on the indices. The India VIX, a measure of market volatility, surged by 8% to 16.89, indicating increased uncertainty among investors. [f2418e0f]
Additionally, two-thirds of Nifty companies missed their Q2 earnings estimates, leading to a downward revision of Nifty earnings for FY25 to less than 10%. Analysts from Axis Securities have maintained a March 2025 Nifty target at 24,600, valuing it at 20 times earnings, while Nomura has indicated that a potential Trump win in the U.S. could be a net-negative for Asia ex-Japan stocks. [eb2426b1]
Geopolitical tensions, particularly the ongoing conflict in the Middle East, continue to weigh heavily on market sentiment. Oil prices have increased by over 1% following a delay in OPEC+ output hikes, further complicating the economic landscape. [81d573a8]
Despite the overall market decline, some companies reported positive results. Gensol Engineering shares rose by 5% after securing a Rs 780 crore solar project, while Mahindra & Mahindra reported a 25% year-on-year growth in SUV sales. Hero MotoCorp also saw an 18% increase in sales year-on-year, with 679,091 units sold in October. However, Bajaj Auto's sales growth was modest, rising only 2% year-on-year. [f2418e0f]
Looking ahead, analysts suggest that the market may stabilize if geopolitical tensions ease and if the Federal Reserve's actions align with investor expectations. The International Monetary Fund (IMF) has projected global growth at 3.2% for the next year, which could provide a more favorable backdrop for the Indian markets if external conditions improve. [8961b0b8]