Markets resumed weakness after a short positive burst in the Muhurat trading session. The Nifty 50 fell 2% to an intraday low of 23,816.60 on Monday. Nifty now has fallen 8.91% since its all-time high in September. Only six stocks gained while 44 were trading in the red.
Mahindra & Mahindra, Cipla and Tech Mahindra were among the top gainers on Monday with gains between 1.5% and 1.9%. On the other hand, Hero Motocorp, Bajaj Auto and Grasim Industries were the top losers with declines between 5.4% and 4.3%.
Several factors could be linked to the market correction. Markets around the globe are in wait-and-watch mode until the U.S. election results come in and markets are volatile due to that. Weak Q2 earnings across the board are also affecting market sentiments.
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The fast-moving consumer goods (FMCG) sector, which was touted to be one of the big winners from the budget, has failed to deliver as muted urban consumption has started to weigh down on the earnings.
India VIX, the volatility index has also risen 7% in the session showing heightened fear across the market investors. FIIs in October had also pulled over ₹1 lakh crore worth of money from the Indian stock markets, further dampening investor sentiments.
Price Action: Nifty 50 was trading at 23,883.55, down 1.73% on Monday.
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