Share Market Crash: The Indian stock market opened with a green mark on October 29. Both the Sensex and Nifty saw gains in early trading. The Sensex gained 408 points to reach 80,834.58, while the Nifty opened with a gain of 113 points. However, the market suddenly changed its direction in the afternoon, losing momentum and slipping into the red.
The Sensex fell nearly 400 points to 80,339.23, while the Nifty slipped below 24,650. IT stocks saw heavy selling, putting pressure on the market. Earlier on Friday, the market had suffered a massive loss of nearly ₹7 lakh crore. Last week, investor valuations had fallen by ₹16 crore in just five days.
The main reasons for the market crash:
- Uncertainty about RBI policy – The results of the three-day Monetary Policy Committee (MPC) meeting, which began on September 29, will be announced on October 1. Investors are awaiting this decision, leading to uncertainty in the market.
- India-US trade deal dilemma – Investors remain cautious due to tariff and H-1B visa issues in the ongoing talks.
- Selling by foreign investors – So far in September, foreign investors have withdrawn about Rs 30 thousand crore, which increased the pressure on the market.
- Weakness in IT stocks – Changes in America's H-1B visa policy and increased fees impacted IT stocks.
- Rise in India VIX – an index that gauges market volatility – rose 1.3% to 11.58%, weakening investor confidence.
Experts say that until the confidence of foreign investors returns and clear signals are received at the global level, the Indian stock market may remain volatile.
