- The BSE Sensex closed at 79,389.06 lower by -5.83% & the Nifty 50 closed at 24,205.35 lower by -6.22% in October 2024, marking their worst monthly performance since March 2020.
- Indian stocks have been a leader for much of 2024 but corrected sharply in October, falling 7.3% in local currency terms, due to weak corporate results and global geopolitical uncertainties.
- Indian share prices experienced the biggest decline in the index amid fears of an escalation in the conflict in the Middle East which could lead to potential disruptions in the supply of oil, a key commodity imported by India.
- The declines in the retail and FMCG sectors highlight inflation’s impact on discretionary spending, with consumers potentially limiting non-essential purchases. Shifts in consumer preferences and higher operational costs may also impact these sectors’ performance.
- In October, foreign portfolio investors withdrew a record Rs 1.14 lakh Crore from Indian equities, causing the Nifty 50 and S&P BSE Sensex to decline significantly. While, Domestic institutional investors mitigated the impact by purchasing Rs 1.07 lakh Crore.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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