However, in intraday deals, investors losses mounted to Rs 10.56 trillion with the total market capitalisation of the BSE slipping to Rs 464 trillion.
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The market breath also favoured the declines as around 2,985 stocks were trading in losses versus advances by 959 stocks, with 101 remaining unchanged.
Meanwhile, Nifty50 slipped to an intraday low of 566 points, down 2.19 per cent to 25,230.30 level in intraday trade.
That apart, the country’s volatility indicator, India VIX jumped to 11.72 per cent. Among sectors.
According to analysts, today’s sharp decline was driven by several negative factors, including escalating geopolitical tensions in the Middle East, recent regulatory changes in the F&O segment by Sebi and strength in the Chinese market, following the People’s Bank of China (PBoC) stimulus package.
“Speculation is growing that Israel may retaliate by targeting major oil fields in Iran, which could further fuel the rise in oil prices. Additionally, recent regulatory changes in the F&O segment by SEBI are expected to impact trading volumes, as retail participation may decline due to the increased contract size and limits on weekly expiries,” said Vishnu Kant Upadhyay, AVP, research & advisory at Master Capital Services.
Analysts also concurred that the foreign money is being diverted from India to China as the country became attractive to investors following its government’s stimulus package.
“There has been a notable outflow of Foreign Institutional Investor (FII) money from India to China over the past few days, exerting pressure on large-cap stocks. Lastly, profit booking ahead of state elections and concerns over elevated valuations have added to the downward pressure,” stated Santosh Meena, head of research, Swastika Investmart.
First Published: Oct 03 2024 | 3:43 PM IST
