Mumbai: India’s stock market dropped over 1% on Monday, as unrelenting selling by foreign investors deepened bearish sentiment. The Nifty closed below 24,000 for the first time in three months, dragged down by Reliance Industries as well as two-wheeler and power stocks. The outcome of the US presidential elections and the US Federal Reserve’s rate-setting meeting could determine the market's direction in the near term, said analysts. The Nifty ended at 23,995—the lowest closing since August 6, down 309 points or 1.3% over Friday’s close. The Sensex closed at 78,782, down 941.88 points or 1.2%. Both indices fell as much as 1.6% earlier in the day. “The sharp decline today can be attributed to investor nervousness due to the impending US election outcome,” said Vaibhav Porwal, cofounder, Dezerv. “The weak earnings this quarter and the global uncertainty have also underpinned the recent decline in Indian markets.” 114961121Foreign portfolio investors (FPIs) sold shares worth a net Rs 4,330 crore on Monday, after pulling Rs 1,09,800 crore out of the market in October. Their domestic counterparts bought shares worth Rs 2,936 crore. In October, they were buyers to the tune of `1,10,500 crore. Since October 1, the Nifty has fallen 7% and Sensex has declined 6.5%. Though markets may be oversold in the near term, the Nifty faces hurdles at 24,300 to 24,500 levels. “The markets have been in a corrective phase for the past one month with no sign of trend reversal,” said Ruchit Jain, lead research analyst, 5 Paisa. “The Nifty may take support at the 200-day moving average of 23,500 to 24,000 levels.” Elsewhere in Asia, China gained 1.17%, Taiwan rose 0.81%, and South Korea ended 1.83% higher. Hong Kong advanced 0.30%, while Indonesia declined 0.34%. In the US, Wall Street indices were a mixed bag. At the time of going to press, the S&P 500 was up 0.1%, the Dow Jones was down 0.3% and the Nasdaq Composite was 0.1% higher. At home, the Volatility Index (VIX) rose 5% to 16.69 on Monday, signalling that traders see near-term risks to the market. “The investor caution is on account of the US election outcome, Fed meeting and China’s stimulus announcement later this week,” said Andrew Holland, CEO, Avendus Capital Alternate Strategies. “This makes it a traders’ market and not an investors' market.”
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