Indian stocks in mixed trading on Monday (November 4, 2024) saw heavy losses led by heavy losses. At around 11:27 am, the 30-share BSE Sensex traded with a gap of 1.6 percent or 1,273.84 points to 78,450.28, while the Nify 50 index was also down 1.68 percent or 409 points to -23,895.
Here are some important reasons for slope maintenance today:
Lowering income growth
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The Indian market is facing issues of slowing earnings growth. FY25 estimates of 24 times are difficult to sustain”.
Importantly, of the 50 Nifty companies, 34 reported muted profit growth during the July-September quarter.
US Presidential Election
The market mood was also cautious ahead of the US election on November 5. Prashanth Tapse, Senior VP (Research), Mehta Equities believes that the US polls show a tight race between Donald Trump and Kamala Harris. The results of the election, expected on November 8, could have an impact on global markets, especially if the counting is delayed. Investors remain cautious, with concerns about inflation and the deficit under both candidates, Tapse added.
The upcoming Federal Reserve meeting
The upcoming meeting of the US Federal Reserve scheduled for November 7 also raises concerns on the Street as analysts are widely predicting a rate cut. Still, some even expect the Fed to hold tight to key policy levels.
Notably, the Fed lowered interest rates for the first time in four years in September by cutting the rate by 50 basis points.
Nifty technicals
Anand James, Chief Market Strategist, Geojit Financial Service said, “Though 24150 has intervened several times in the past week to avoid bearish attempts, its upside volatility has not been strong. Last week, it has 24660-770 barriers nearby.”
James added that while we expect these levels to be challenged this week, the broader trend now requires multiple days to close above 25100 to completely abandon the rally selling pattern that continues to be the dominant theme.
Besides, failure to float above 24470 or direct fall back below 24150, will expose 23900-23300, he noted.