Stock Market Decline: Indian benchmark indices, Sensex and Nifty, experienced significant declines on November 7, 2024, despite Donald Trump’s victory in the U.S. Presidential Election. The BSE Sensex fell by 958.79 points, or 1.19%, settling at 79,541.79, while Nifty dropped 305 points, or 1.24%, to 24,199.35.
Broader markets also suffered losses, with the BSE SmallCap index decreasing by 288.10 points, or 0.51%, to an intraday low of 55,720.03. The BSE MidCap index similarly fell 353.59 points, or 0.75%, settling at 46,590.43 levels, reflecting widespread market weakness.
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The dollar strengthened significantly following the election, with U.S. Treasury yields surging due to concerns over higher deficits. This drove the dollar to its largest one-day gain against major currencies in over two years, impacting commodity prices negatively.
Following Trump’s election, investors moved into U.S. assets, leading to a drop in gold prices, which fell over 3% to a three-week low. This trend signals a shift in investment flows from emerging markets to U.S. equities, further exacerbating declines in the Indian market.
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Sectors such as IT, metals, and pharmaceuticals faced steep drops, with Nifty IT down 1.64% and metals slipping 2.29%. Concerns over potential tariffs on China under Trump’s administration also raised alarms for Indian metal companies, which heavily rely on Chinese steel imports.
Foreign Institutional Investors (FIIs) continued their selling spree, offloading Rs 11,556.72 crore in equities in November, following a record Rs 1 lakh crore in sales during October. This trend has put additional pressure on the Indian stock market.
Weak September quarter earnings contributed to the market’s decline, as sluggish corporate revenue and earnings growth highlighted a challenging demand environment. Furthermore, the upcoming Futures and Options expiry may have influenced stock prices, adding to market volatility.
