Indian equity benchmarks experienced a significant selloff on October 22, 2024, with the BSE Sensex dropping 930.55 points to close at 80,220.72 and the NSE Nifty falling 309 points to end at 24,472.10, marking the lowest levels in over two months. The decline was fueled by persistent selling from foreign institutional investors (FIIs) and disappointing quarterly earnings.
The Nifty breached the critical 24,500 mark during the day, reflecting a broader market weakness. Sectoral indices, particularly PSU Banks, faced substantial losses, with the Nifty Midcap Select and Nifty Next 50 indices also declining significantly.
Market breadth was overwhelmingly negative, with 3,430 stocks declining against only 557 advancing on the BSE. Major contributors to the downturn included Mahindra & Mahindra, State Bank of India, and Tata Steel, while ICICI Bank, Nestle India, and Infosys were among the few gainers.
The sharp decline in Indian equities coincided with rising US bond yields and sluggish global market conditions, which analysts believe have dampened investor sentiment. FIIs offloaded equities worth ₹2,261.83 crore, while domestic institutional investors recorded a net inflow of ₹3,225.91 crore.
Technical indicators suggest further weakness ahead, with the Nifty slipping below its 20-week moving average. Analysts anticipate potential support around the 24,000 level due to high open interest on the put side.
Global uncertainties, including volatile oil prices and geopolitical tensions, continue to impact market dynamics. The RBI's latest bulletin maintains a GDP growth forecast of 7.2% for FY25, indicating that the current slowdown may be temporary, with expectations of a rebound in festive season consumption.