Therefore, the impact of American elections is visible on the Indian stock market, Sensex jumped 694 points in a volatile journey.

New Delhi : In a bumpy ride, stock indices in India kept swinging between red and green in Tuesday's session. The Sensex finally closed at 79,476.63, up 694.39 points or 0.88 per cent, while the Sensex closed at 24,213.30, up 217.95 points or 0.91 per cent. The benchmark Sensex, however, is some way short of its all-time high of 85,978 points.

According to NSE data, Nifty banks, financial services, metals, PSU banks and private banks were the top gainers. In highly volatile trading yesterday, Indian stock indices moved down largely due to sustained selling by foreign portfolio investors. At one point during the session, the Sensex was down nearly 1,500 points, but later it was able to par some losses. The outflow of foreign funds has been a matter of concern in the last month.

Foreign portfolio investors (FPIs) sold shares worth Rs 94,017 crore in India in October, impacting the overall performance of the stock market. In the process, they became net sellers in India after being buyers for four months. Notably, the total number of shares sold by them in India in October was the highest ever in a month, data from National Securities Depository Ltd showed.

“It is important to understand that India’s underperformance is shocking: while the S&P 500 is up 20.45 per cent year-to-date, the Nifty is up only 10.36 per cent year-to-date,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. Is. Clearly, domestic issues are weighing on the markets. With two-thirds of Nifty 50 companies missing their earnings estimates in Q2, Nifty 50 earnings for FY25 have been heavily revised downwards to less than 10 per cent from 15 per cent earlier. “

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Vijayakumar said it would be difficult to maintain the current valuations with such an earnings decline. This argues for continued FII selling which may continue for some more time. This may be a matter of concern.

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Going forward, investors in India and across the world will be eyeing the US elections on November 5, which will see a tight contest between the presidential candidates, Kamala Harris and Donald Trump, and the US Fed monetary policy meeting on Thursday. Apart from this, the income of Indian industry will also be kept under watch.