Sensex drops below 77,500 as market decline persists; Nifty IT leads losses

The domestic stock market continued its downward trajectory as trading opened on Monday in the red. The Bombay Stock Exchange (BSE) benchmark index, Sensex, dropped by 393.74 points to trade at 77,186.57 as of 9:59 am. Similarly, the National Stock Exchange (NSE) Nifty fell by 132 points to 23,400.70. However, Nifty Bank offered some respite, trading in the green at 50,248.25 with a gain of 68.7 points.

Among the sectoral indices, Nifty IT bore the brunt of the losses, falling by 0.8%. BSE Media and Oil & Gas also experienced similar declines of 0.8%. Meanwhile, Nifty Metal and Realty saw gains of 1.3%, with Nifty Consumer Durables and Nifty Financials climbing by 0.8% and 0.3%, respectively. Market experts attributed these fluctuations to a combination of global economic concerns and upcoming political developments in Maharashtra.

India’s stock market capitalization hit an 11-month low amid a sharp correction in November. This reflects the broader sell-off in the market, which has erased nearly ₹50 lakh crore in market value since the bull market ended less than two months ago. Investors continue to grapple with volatility and losses as key sectoral indices remain under pressure.

The upcoming Maharashtra assembly elections, scheduled for November 20, are being closely watched by market participants. Political and economic stability in the state is expected to influence market sentiment. The election results, which will be declared on November 23, could play a crucial role in determining the market's direction.

In the Asia-Pacific region, most stocks saw gains, providing a mixed global backdrop. Key economic indicators from Asia, including China’s loan prime rate and Japan’s inflation data, are expected this week and may influence regional markets. China’s LPR, currently at 3.1% for one year and 3.6% for five years, is unlikely to change.

Experts caution investors to remain vigilant as domestic and international developments continue to impact market performance. With mounting uncertainty, especially ahead of the Maharashtra elections, the road ahead for the stock market remains unclear.