On November 4, the Indian stock market experienced a significant downturn, with both the Sensex and the Nifty 50 indexes crashing over 1% in a dramatic selloff. The Sensex opened at 79,713.14, down from its previous close of 79,724.12, and plunged nearly 2% to reach 78,232.60 during the day. The Nifty 50 also faced similar pressure, opening at 24,315.75 and dropping to 23,816.15, down about 2% from its previous close of 24,304.35. Ultimately, the Sensex closed at 78,782.24, down 942 points or 1.18%, while the Nifty 50 settled at 23,995.35, losing 309 points or 1.27%.

The broader market felt the impact as well, with the BSE Midcap and Smallcap indices declining 1.31% and 1.65%, respectively. This selloff resulted in a steep drop in the overall market capitalization of BSE-listed companies, which fell to nearly ₹442 lakh crore from ₹448 lakh crore, translating to a loss of around ₹6 lakh crore for investors in just one session.

In the Nifty 50 index, a staggering 42 stocks ended the day in the red, with notable losers including Hero MotoCorp, Grasim, Bajaj Auto, Adani Ports, and BPCL, all experiencing declines of 3-4%. Conversely, Mahindra and Mahindra, Tech Mahindra, Cipla, and SBI emerged as the top gainers, with modest gains of 1-2%.

Sectoral Performance

Sectorally, the Nifty Realty, Oil & Gas, and Media indices faced significant pressure, each falling over 2%. Other sectors, including Bank, Auto, Financial Services, FMCG, Metal, Private Bank, and Consumer Durables, recorded declines of about 1%. The India VIX, which measures market volatility, surged 5% to 16.70, indicating increased investor anxiety.

Key Factors Driving the Market Down

Experts identified five critical factors contributing to today's market crash:

1. Caution Ahead of the U.S. Election: Investors are reacting to nervousness surrounding the U.S. election, with opinion polls showing a tight race between Democratic candidate Kamala Harris and Republican Donald Trump. This uncertainty is creating a risk-averse sentiment among market participants.

2. Valuations Still Uncomfortable: Despite recent market corrections, the current P/E (price-to-earnings) ratio of the Nifty 50 stands at 22.7, which is above the two-year average of 22.2 and close to the one-year average. This suggests that valuations remain stretched, leading to cautious investment behavior.

3. The Fed Factor: With the U.S. Federal Reserve set to announce its policy outcome on November 7, expectations of a 25-basis-point rate cut are not expected to significantly influence market movements, as these developments are likely already priced into current valuations.

4. Weak Q2 Numbers: The corporate earnings reports for the September quarter have been weaker than anticipated, raising red flags for investors regarding future market performance and growth prospects.

5. Sharp Selloff by FPIs: The market is currently facing heavy selloff pressures from foreign portfolio investors (FPIs). Meanwhile, domestic institutional investors (DIIs) are also adopting a cautious approach in anticipation of major global events scheduled for the coming week.
   

Stocks in News

Exide Industries has seen a sharp decline in its net profit for Q2FY25, falling by 14.1% year-on-year (YoY) to Rs 231.3 crore. The fall was attributed primarily to increased expenses, notably in raw materials, employee benefits, and finance costs. However, the company’s revenue increased slightly by 1.8% YoY to Rs 4,490.3 crore, supported by growth in its two-wheeler and four-wheeler replacement, as well as industrial UPS and solar segments. Exide continues to appear in stock screeners that highlight an uptrend in non-core income, a notable factor for investors.

Meanwhile, IDBI Capital upgraded its stance on Ami Organics, raising it to a 'Buy' rating from a previous 'Hold,' with a new target price of Rs 2,250 per share. This change suggests a potential upside of 13.8%. IDBI Capital cited expected growth in key molecules and the scale-up of Ami’s contract development and manufacturing organization (CDMO) segment as key drivers of future revenue. The brokerage forecasts a robust revenue compound annual growth rate (CAGR) of 31.7% from FY25 to FY27, making Ami Organics an attractive stock for investors.

Bharat Global Developers surged, hitting its 5% upper circuit after it secured a Rs 300 crore order from McCain India Agro. This contract will require Bharat Global Developers to supply 200,000 tonnes of potatoes over the next six months, a significant order that has positively impacted its stock price.

In the consumer sector, Hatsun Agro Products reported a YoY decline in its net profit by 17.1% to Rs 64.3 crore for Q2FY25, largely due to increased employee benefits and finance costs. Despite these challenges, its revenue grew by 8.3% YoY to Rs 2,078.7 crore, indicating stable demand in its key markets.

DCM Shriram demonstrated strong performance with its net profit surging 95.2% YoY to Rs 62.9 crore in Q2FY25. This growth was aided by lower inventory and reduced fuel & power expenses. DCM Shriram’s revenue also rose by 11.8% YoY to Rs 3,184 crore, supported by improvements across multiple segments, including chloro-vinyl, sugar, and fertilizers.

In the auto sector, Hero MotoCorp reported a robust 18.1% YoY increase in monthly wholesales, reaching 680,000 units in October. The company saw a significant boost in its domestic motorcycle sales, with exports growing by 43% YoY to 21,688 units. Similarly, Maruti Suzuki anticipates strong sales for November, as several lakh weddings are expected to sustain the festive sales momentum after the company recorded October retail sales of 200,000 units.

Conversely, Bajaj Auto experienced a decline in domestic wholesales by 8% YoY to 300,000 units in October, driven by lower sales in the two-wheeler and commercial vehicle segments. However, exports surged by 24% YoY to 180,000 units during the same period, highlighting strong international demand.

Energy stocks faced a difficult trading session, with major players like Indian Oil Corp, Tata Power, Bharat Petroleum Corp, and Coal India all recording declines of over 3%. The broader Nifty Energy index mirrored this downward trend, dipping over 3%, which has affected investor sentiment in the energy sector.

Infrastructure stock IRB Infrastructure Developers also fell, with its Q2FY25 net profit missing estimates by 1.8% despite a 4.3% YoY increase to Rs 99.9 crore. This was due to a 6.6% YoY decline in revenue to Rs 1,751.6 crore, primarily impacted by reduced construction activities.

In manufacturing, India’s Manufacturing PMI rose to 57.5 in October, an increase from September’s nine-month low of 56.5. This growth was driven by strong domestic and international demand, signaling resilience in the manufacturing sector.

Biopharmaceutical company Biocon saw a sharp fall as it reported a net loss of Rs 16 crore in Q2FY25, a drastic shift from a net profit of Rs 125.6 crore YoY. Higher inventory, employee costs, and deferred tax expenses impacted the company’s results, while revenue remained flat at Rs 3,622.9 crore.

Engineering and infrastructure giant Larsen & Toubro performed well, reporting a 13% YoY increase in net profit to Rs 703.6 crore for Q2FY25. Revenue rose significantly by 20.1% YoY to Rs 62,655.9 crore, driven by growth in sectors such as infrastructure projects, energy projects, and hi-tech manufacturing.

Despite posting a 5.8% YoY increase in net profit to Rs 926.5 crore, Tata Power saw its stock fall as the results fell 12.3% below market estimates. The company’s revenue increased 11.9% YoY to Rs 16,219.8 crore, largely due to growth in the transmission & distribution segments.

DAM Capital has initiated a ‘Buy’ rating on Bharti Airtel, with a target price of Rs 1,907. The brokerage projects sustained multi-year growth, especially in the home broadband and B2B business segments. It forecasts wireless subscriber growth of over 2% annually and a 7% yearly increase in average revenue per user (ARPU) over the next decade.

Afcons Infrastructure made its stock market debut at an 8% discount to its issue price of Rs 463. The Rs 5,430 crore IPO was oversubscribed by 2.6 times, but market pressures resulted in a discounted opening.

Bondada Engineering posted impressive results, with its net profit surging by 142.2% YoY to Rs 36 crore in Q2FY25. Revenue also grew by 62.7% YoY to Rs 483.4 crore, bolstered by the engineering, procurement & construction (EPC) segment.

Narayana Hrudayalaya reported a 12.3% YoY decline in net profit to Rs 198.6 crore, attributed to increased raw materials and employee expenses. However, its revenue grew by 7.6% YoY to Rs 1,423.6 crore on the strength of its healthcare services.

Finally, Welspun Corp secured two substantial orders from the US, totaling approximately Rs 1,300 crore for the supply of coated helical submerged arc welding (HSAW) pipes for natural gas pipelines. This deal underscores Welspun’s strategic positioning in the global energy sector, providing a positive outlook for future growth.

As the market grapples with these challenges, investors remain vigilant about the evolving landscape and the potential impacts of both domestic and international developments. With uncertainty looming over global economic conditions, especially in light of the U.S. elections and anticipated monetary policy shifts, market participants will be closely monitoring these trends to navigate the turbulent waters ahead.

The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Swiggy, ACME Solar Holdings, Sagility India, Neelam Lines and Garments, Niva Bupa Health, Rosmerta Digital, NTPC Green, Avanse Financial.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.