The Sensex and Nifty extended their losses by nearly 1 percent in the last hours of trade on October 22, with all sectoral indices adding to the pressure. Oil & gas, auto, and metal stocks led the losses in Nifty.
At 2.55 PM, the Sensex was down 732 points or 0.9 percent at 80,418 and the Nifty was down 256 points or 1 percent at 24,525. About 406 shares advanced, 3,057 shares declined, and 58 shares remained unchanged.
Indian markets have been struggling amid a lackluster earnings season, persistent FII selling, and global market weakness, particularly due to the ongoing Middle East conflict.
Foreign Institutional Investors (FIIs) have been consistently pulling out funds from Indian equities and redirecting them to China, where recent stimulus measures and cheaper valuations have made the market more attractive. FIIs have been net sellers throughout October.
FIIs have been net sellers throughout October, offloading shares worth Rs 82,479.7 crore as of October 21, while Domestic Institutional Investors (DIIs) have stepped in, buying shares worth Rs 77,402 crore.
So far in October, the Nifty has declined nearly 5 percent, while the Sensex has dropped over 4 percent.
"The first sign of a reversal will come if Nifty closes above 24,700. Until then, it’s a 'wait and watch' situation," said Rajesh Bhosale, Equity Technical Analyst at Angel Broking.
The broader market took a heavy hit, with the BSE Midcap plunging 2.5 percent, while the BSE Smallcap crashed by a staggering 3.5 percent.
Nifty Energy, Auto, Metal, PSU Bank, Realty, and Media indices were down by 2-3 percent, posting the steepest declines.
The Nifty 50 hardly had any gainers in today's session. Adani Enterprises, Bharat Electronics, Coal India, M&M, and Tata Motors were the biggest losers on the index, each dropping between 3-4 percent.
Analysts will keep looking at key factors like Q2FY25 domestic earnings, crude oil prices, geopolitical tensions in the Middle East, and the US Presidential election campaign.
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