Nifty Suffers a 2.8% Decline in October

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, revealed that the Nifty index witnessed a 2.8% decline in October 2023, influenced by factors such as the Israel-Hamas conflict, surging crude oil prices, and a spike in US bond yields. Looking ahead, market direction will be guided by the upcoming US Federal Reserve policy announcement scheduled for Wednesday. Additionally, investors will keep a close watch on key economic data releases, including Europe’s core Consumer Price Index (CPI), US Consumer Confidence, PMI figures from India, the US, and the UK, as well as US nonfarm employment data, all set to be unveiled on Wednesday.

The auto sector is expected to garner attention as original equipment manufacturers (OEMs) are anticipated to report robust sales growth for the month of October, based on favorable management commentary indicating strong Navratri festival sales. Furthermore, stock-specific developments will come into focus as companies like Sun Pharma, Tata Steel, Britannia, Hero MotoCorp, Godrej Consumer, and Ambuja Cement are poised to announce their Q2 earnings.

Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities, noted that Nifty initially opened with a 92-point gain at 19,232 but was unable to sustain this momentum. By the end of the session, Nifty closed at 19,079, marking a 61-point loss. This decline followed a minor profit booking phase, following a notable pullback rally of nearly 400 points over the last three trading sessions.

In addition to these market movements, it’s worth noting that the Bank of Japan made further adjustments to its bond yield control policy, taking gradual steps to reduce its decade-long monetary stimulus.”