Why Did Stock Market Fall Today? Key Factors Behind Sensex, Nifty Decline On October 31 | Markets News

Stock Market Today

Why Is the Market Falling Today? The Indian benchmark indices closed lower on Friday, extending their losing streak as broad-based selling weighed on sentiment. The BSE Sensex declined 466.75 points, or 0.55%, to finish at 83,938.71, while the NSE Nifty50 fell 155.75 points, or 0.60%, to 25,722.10.

Except for BEL, Larsen & Toubro, TCS, ITC, and SBI, all Sensex constituents ended in the red. Eternal, NTPC, Kotak Mahindra Bank, Bajaj Finserv, ICICI Bank, and HDFC Bank were among the top drags, slipping up to 3.45%.

Weakness extended to broader markets, with the Nifty Midcap 100 and Nifty Smallcap 100 down 0.45% and 0.48%, respectively.

Only Nifty PSU Bank (up 1.5%) and Nifty Oil & Gas (up 0.07%) managed to hold firm. Nifty Metal and Media faced the steepest losses, each falling over 11%.

Key Reasons Behind the Market Decline

1) FII Outflows

Foreign institutional investors continued to pare exposure, selling Rs 3,077.59 crore worth of equities on Thursday after offloading Rs 2,540.16 crore on Wednesday. “Renewed selling by FIIs is likely to be a drag on the market in the near term,” said Dr. V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments.

2) Weak Global Cues

Global cues remained subdued. US markets closed lower overnight, with the Dow Jones falling 0.23% to 47,522.12, S&P 500 losing 0.99% to 6,822.34, and Nasdaq tumbling 1.57% to 23,581.14.

Asian markets showed mixed trends: Japan’s Nikkei 225 rose 1.21% to 51,948.26, South Korea’s KOSPI gained 0.47% to 4,106.03, while Hong Kong’s Hang Seng slipped 0.82% to 26,066.41. “Markets are treading cautiously amid Fed uncertainty and global volatility,” noted Ponmudi R, CEO, Enrich Money.

3) US-China Trade Deal Uncertainty

Talks between US President Donald Trump and Chinese President Xi Jinping brought only a temporary truce, not a full agreement. “The Trump-Xi summit delivered only a one-year truce in the US-China trade war, not a breakthrough deal,” said Vijayakumar. “Markets were disappointed despite some relief from easing tensions.”

Technical View

“Bullish momentum is fading,” said Anand James, Chief Market Strategist, Geojit Financial Services. He added that the Nifty is developing a potential topping pattern, with resistance near 25,960. Unless sustained strength emerges, downside levels of 25,700–25,400 are possible.

Ponmudi R stated, “The Nifty has twice defended the 25,800 zone, reaffirming it as a strong short-term base and a key level of investor confidence. Immediate resistance lies at 26,000–26,100, where notable call writing has capped upside momentum. A decisive breakout above 26,100 could reignite buying interest and propel the index toward 26,250–26,400, while a slip below 25,800 may trigger profit booking toward the earlier breakout support at 25,660. Overall, as long as the index sustains above 25,800, the broader setup remains constructively bullish, with sentiment still tilted in favor of the bulls.”

“Bank Nifty mirrored the broader market’s resilience, bouncing from intraday support near 57,900. The index now faces resistance at 58,000–58,250, and a close above this range may fuel an advance toward 58,500–58,800. On the downside, 57,800 and 57,500 act as crucial supports. Sustaining above 58,000 will likely keep the short-term momentum positive,” he added.

Trading Strategy

“Long-term investors can slowly accumulate fairly valued growth stocks,” said Vijayakumar. He highlighted India’s maritime growth push as a theme to watch: “India’s grand maritime strategy entails massive expenditure on shipping. Ship-building stocks have strong long-term potential.”

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.