Nifty and Sensex dip post-Muhurat rally; experts blame THESE global factors

Indian stock markets opened lower on Monday, November 5th, marking a reversal from the previous day's Muhurat trading gains. The Nifty 50 index and the BSE Sensex both declined in early trade. Sensex tumbled 665.27 points to 79,058.85 in early trade while Nifty tanked 229.4 points to 24,074.95.

Experts attribute this week's market volatility to several global factors:

• US presidential election: The outcome of the US Presidential Election on November 5th is expected to have a significant impact on global markets.
• Fed rate cut: The Federal Reserve's decision on interest rates, anticipated to be a 25 basis point cut, will also influence market sentiment.
• OPEC+ decision: The OPEC+ alliance's decision to maintain oil production levels could impact energy prices and global economies.
• Warren Buffett's cautious stance: Warren Buffett's increased cash holdings and reduced share buybacks signal a potential downturn in US markets.

Domestic market outlook

Given these global uncertainties, investors are advised to adopt a cautious approach. The Nifty IT index declined, while other sectoral indices showed mixed trends.

Several companies, including Indian Railway Finance Corp, IRCTC, Exide Industries, Raymond, Sundaram Finance, and ABB India, are scheduled to announce their quarterly results today.

Asian markets mixed

In Asian markets, South Korea's KOSPI led the gains, while Japan's Nikkei was closed for a holiday. Hong Kong's Hang Seng and Taiwan's Taiwan Weighted also saw modest gains.

As the week unfolds, investors will closely monitor global developments and their potential impact on Indian markets.
(With inputs from agencies)