The Indian stock market turned cautious on October 14, with benchmark indices giving up early gains. The Sensex fell nearly 500 points, while the Nifty slipped below 25,100, marking the second consecutive session of declines amid weak global cues and foreign fund outflows.
Market Performance
- Sensex: 81,834.28, down 492.77 points or 0.60%
- Nifty: 25,082.10, down 145.25 points or 0.58%
- Top gainers: Tata Motors, Wipro, Oil & Natural Gas Corporation
- Key laggards: Bajaj Finance, Axis Bank
Despite the initial intraday highs, selling pressure pushed the indices lower, reflecting caution among traders.
Key Factors Behind the Decline
Several factors contributed to the market slowdown:
- FII Selling Pressure: Foreign Institutional Investors (FIIs) turned net sellers again, offloading equities worth Rs 240.10 crore after four sessions of buying, adding pressure to the domestic market.
- Expiry-Linked Volatility: The ongoing Nifty expiry led to choppy trade, with traders squaring off positions in the derivatives segment.
- Rising India VIX: The volatility index rose over 3% to 11, signaling growing market uncertainty and potential for sharper price swings.
- Weak Global Cues: Asian markets traded lower, with South Korea’s Kospi and Shanghai Composite down up to 1%, Japan’s Nikkei 225 and Hong Kong’s Hang Seng declining up to 3%, and Wall Street futures trending 0.5% lower.
- Rupee Weakness: The rupee slipped 9 paise to 88.77/USD, pressured by a stronger greenback and overseas fund outflows.
- Crude Oil Rise: Brent crude rose 0.33% to USD 63.53 per barrel, adding potential inflation concerns for domestic markets.
Summary
The Sensex and Nifty’s decline reflects a combination of foreign selling, global weakness, and domestic volatility. Traders remain cautious as market participants navigate expiry-related swings, currency movements, and rising crude prices. Short-term volatility is expected to persist while investors watch global markets and domestic cues closely.
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