Indian markets faced a challenging day on Tuesday, marking the end of their most difficult month in 2023. The main factors contributing to this decline were the consistent selling by foreign investors, driven by elevated US interest rates, and the ongoing conflict in the Middle East.
The S&P BSE Sensex concluded with a 0.37% drop, settling at 63,874.93, while the benchmark NSE Nifty 50 also experienced a 0.32% decline, closing at 19,079.60. Both of these indices have seen losses of nearly 3% each over the course of October.
The concerns stemming from the Middle East conflict have caused a significant increase in oil prices, which is detrimental for countries like India that depend heavily on oil imports.
Notable gainers for the day included Titan, Kotak Mahindra Bank, Asian Paints, HCL Technologies, Tech Mahindra, NTPC, Nestle, and Power Grid. On the other hand, major laggards comprised Mahindra & Mahindra, Bharti Airtel, ICICI Bank, IndusInd Bank, Reliance Industries, Axis Bank, and HDFC Bank.
The US Federal Reserve’s discussion of maintaining higher interest rates for an extended period has pushed US Treasury yields to multi-year highs, making them more appealing to investors. This has contributed to the overall market situation.
The BSE benchmark jumped 329.85 points or 0.52 per cent to settle at 64,112.65 on Monday. The Nifty advanced 93.65 points or 0.49 per cent to 19,140.90.
(With inputs from agencies)
