Earlier today, businessline had said in an article that the rally that the Indian stock markets saw on November 6, was unlikely to sustain. It took its cue from the Gift Nifty at 24,450 which signalled a gap-down opening of about 130 points as Nifty futures on Wednesday closed at 24,587.

Analysts had said that domestic macro events and the Fed meet will remain in focus. With foreign portfolio investors continuing to remain in ‘sell’ mode, the rally may peter out, they added. Q2 results of India Inc are not supportive of valuation, they had further added.

Sure enough, both the Sensex and Nifty plunged. The BSE Sensex plummetted 782.84 points midday to 79,595.29 and the NSE Nifty slid 262.10 points to 24,221.95, marking a decline of 0.97 per cent and 1.07 per cent, respectively.

Metal and technology stocks led the downturn, with Hindalco Industries emerging as the biggest laggard, tumbling 8.00 per cent. Other major losers included Trent (-4.61 per cent), Grasim Industries (-3.00 per cent), Tech Mahindra (-2.59 per cent), and Adani Enterprises (-2.41 per cent).

Among gainers, Apollo Hospitals Enterprise surged 6.18 per cent, followed by State Bank of India gaining 0.82 per cent. Tata Steel, HDFC Life, and Larsen & Toubro also managed to stay in the green, adding 0.44 per cent, 0.38 per cent, and 0.16 per cent respectively.

The broader market showed mixed signals, with 1,963 stocks advancing against 1,868 declines on the BSE. A total of 3,965 stocks were traded, with 134 remaining unchanged. The market witnessed 226 stocks hitting their 52-week highs, while 11 touched their 52-week lows. Additionally, 321 stocks hit the upper circuit limit, and 199 reached the lower circuit.

The Nifty Bank declined by 359.35 points to 51,958.05, while the Nifty Financial Services index fell by 232.30 points to 23,948.90.

The markets opened lower than yesterday’s close and continued to decline during morning trades, with selling pressure visible across most sectors.

Concerns for investors include potential U.S. policy shifts and their global implications, particularly following earlier assessments of Trump’s re-election prospects and anticipated Federal Reserve policy decisions.

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