Indian stock market tumbles on excessive foreign portfolio investors sell-off
Nifty drops below 24,000, Sensex plummets by 1,000 points
The Indian stock market experienced a significant decline on Friday, driven by a massive sell-off from foreign portfolio investors (FPIs).
The Nifty index fell below 24,000, while the Sensex plummeted by over 1,000 points. Experts attribute this bearish trend to the upcoming US presidential elections, which have shaken investor confidence.
In October 2024, FPIs withdrew a record Rs 94,000 crore ($11.2 billion) from the Indian market, surpassing the previous high of Rs 61,973 crore in March 2020. The high valuations of domestic equities and attractive prices in the Chinese stock market contributed to this exodus.
As a result, the Sensex and Nifty are at their lowest levels since the Covid-19 pandemic, reflecting the negative sentiment surrounding the US elections and the movement of foreign investment portfolios. The BSE Sensex dropped by approximately 1,491.52 points, or more than 1.87%, to trade at 78,232.6, while the NSE Nifty fell by 488.2 points, or nearly 2%, to 23,948.
In contrast, Pakistan's stock market saw a historic surge, reaching a record high of 92,000 points on expectations of a rate cut by the State Bank of Pakistan's monetary policy committee (MPC), which is set to meet today to announce the new policy rate.
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