Home / Business and Economy / Dalal Street Plunges: Banks, Oil, FPIs Fuel Selloff
Dalal Street Plunges: Banks, Oil, FPIs Fuel Selloff
19 Oct
Summary
- Sensex fell 920 points; Nifty 50 slipped 275 points on Monday.
- Heavyweight bank stocks and elevated crude oil prices impacted sentiment.
- Foreign investors withdrew approx. Rs 52,100 crore from Indian equities in October.
The Indian stock market experienced a significant selloff on Monday, October 19, as benchmark indices Sensex and Nifty 50 both registered substantial declines. The Sensex dropped by 920 points, while the Nifty 50 slipped by 275 points, breaking a recent two-session winning streak.
Several factors contributed to this market weakness. Heavyweight private bank stocks, including HDFC Bank, ICICI Bank, and Axis Bank, dragged down the indices as investors assessed their September-quarter earnings. HDFC Bank shares fell nearly 3 percent, and Axis Bank saw a around 5 percent intraday decline after its quarterly performance fell short of market expectations.
Elevated crude oil prices also remained a major concern for investors, with Brent crude trading around $108-$109 per barrel. For India, rising oil prices can increase the import bill, pressure the rupee, and add to inflation risks.
Furthermore, foreign portfolio investors (FPIs) continued their outflows, withdrawing approximately Rs 52,100 crore from Indian equities in October up to the latest data available on Monday. This sustained selling pressure, influenced by rising US bond yields and a stronger dollar, has made investors cautious about emerging markets like India.
