Sensex Falls 100 Points, Nifty Slips Below 22,500: Top Reasons Why Stock Market Is Down Today

The stock market this morning stayed under pressure on Thursday, October 1, with the Sensex and Nifty 50 trading lower as persistent foreign fund outflows is keeping the risk sentiment weak in the dalal street today

Currently, sensex is down 102 points and Nifty fell 61 points around 9:50 AM. At the opening bell today, the Nifty 50 was down 0.34% at 22,543.7, while the BSE Sensex slipped 0.4% to 72,192.89, continuing a losing run.

Why is the stock market falling today?

The biggest reason for the Sensex and Nifty fall today is continuous FII selling. As per Reuters report, Foreign portfolio investors sold Indian shares worth Rs 10,148 crore about $1.06 billion on Wednesday. They have offloaded around $3.6 billion over the previous five sessions, taking year-to-date foreign sales to $27.8 billion. Foreign investors were also net sellers on 15 of 20 trading days in September, the report noted.
Crude oil price movement is the second big reason. Brent crude futures slipped to around $98 a barrel after Tehran said it had received Washington’s response to its latest ceasefire proposal.

Days earlier, US President Donald Trump had said he rejected the proposal, so hopes of a peace deal are unlikely.

Elevated US bond yields are adding to the pressure. The US 10-year Treasury yield ended September 25 at 5.17%, and higher yields make safer US debt more attractive than emerging-market equities, encouraging more foreign selling and putting pressure on the rupee.

The Nifty 50 and Sensex have lost about 2.6% and 2.3% this week and are headed for an eighth consecutive weekly decline, the longest such streak in 25 years. The Nifty fell about 5.7% in September, and the Sensex is down 10.5% YoY, while the Nifty is down about 8.9% YoY.

Stocks and Sectors In Focus

Heavyweights were weak at the open, with Bajaj Auto and Max Healthcare falling as much as 3%. On Wednesday, when the Sensex ended 48.78 points lower at 72,480.29 and the Nifty 95.75 points lower at 22,620.45, Apollo Hospitals, Max Healthcare and BSE were the top Nifty losers. Healthcare, pharma, consumer durables and metals led the sectoral declines, while realty, private banks and media gained.

Global Market Performance

Overseas markets giving mixed signals. The Dow Jones Industrial Average fell about 0.9%, while the S&P 500 declined 0.3%. The Nasdaq, however, gained around 0.2%. The S&P 500 had its third losing month in the past four months.

Meanwhile, Asian equities were largely positive on Thursday, with technology and AI-related stocks supporting sentiment. Japan’s Nikkei 225 jumped 2.4%, South Korea’s Kospi rose 0.5%, Hong Kong’s Hang Seng gained 0.4%, and China’s Shanghai Composite added 0.3%. Australia’s ASX 200 declined 1.7%.

Market Outlook Ahead

“Technically, the market opened on a muted note but once again faced resistance around the 22,800/73,000 levels, triggering a sharp reversal. From the intraday highs, the Nifty and Sensex declined nearly 200 points and 650 points, respectively. The Nifty formed a bearish candle on the daily chart, while the intraday charts continue to indicate a lower-top formation, keeping the near-term outlook cautious.” said Shrikant Chouhan, Head Equity Research, Kotak Securities

“For day traders, the 22,600-22,550 / 72,400-72,200 levels remain an important support zone. Sustaining above this zone could trigger a pullback towards 22,750-22,800 / 72,800-73,000. However, a decisive break below 22,500 / 72,000 could intensify selling pressure and drag the indices towards 22,300-22,150 / 71,400-71,000.” he further added

Thursday is the last session of the week, as the market will be closed on Friday for a Gandhi Jayanti holiday. Normal trading session will resume on Monday October 5th.

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