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Benchmark Indices Log Fall Of Over 2% Ahead Of US Election

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In the week to October 30, 2020, Indian stock markets posted their biggest weekly losses in a month's time on weak global cues with 3 straight sessions of fall. A host of factors such as rising coronavirus cases in the US and Europe, delay in release of the US stimulus and the US Presidential elections slated for November 3 continue to weigh. For the week,Nifty and Sensex dropped 2.4% and 2.6%, respectively.

Benchmark Indices Log Fall Of Over 2% Ahead Of US Election
 

On a monthly basis however, the benchmarks indices in October recorded gains of net 4 percent after inching higher by a sharp 8 percent. Analysts at one point even estimated that Nifty will hit a new record high in the week ahead. However global sentiments resulted in a pullback on the Dalal Street.

RIL- Biggest Drag on stock market performance in October

From the closing price of Rs. 2234.35 on September 30, the share price of heavyweight Reliance Industries in one month's time (October alone) has dropped significantly by 8% to Rs. 2054.35 per share currently.

FIIs turn net sellers towards October month end

FIIs which were aggressively buying into the Indian markets towards the fag end of the month turned net sellers. In the backdrop of outflows in equity schemes, mutual funds redeemed their positions for an amount equivalent to Rs. 12000 crore. India VIX i.e. a measure of stock market volatility also surged 3 percent.

Investors can use potential market correction to build portfolio

"Market mood was wary on a steady increase in daily Covid-19 cases globally despite falling cases in India and uncertainty around the upcoming US elections. Even though second quarter corporate earnings numbers have been encouraging so far, markets are showing signs of weakness. Our advice would be to take advantage of a potential market correction to build a portfolio of good quality stocks", Sanjeev Zarbade, vice-president - private client group research, Kotak Securities, said.

GoodReturns.in

Read more about: stock markets
Story first published: Saturday, October 31, 2020, 13:07 [IST]
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