Share Market News: Share Market Plunges: Investors Lose 6 Lakh Crore in 19 Hours Amidst Global Headwinds

The Indian share market has witnessed a significant downturn over the past three consecutive trading sessions, resulting in a substantial loss for investors. In approximately 19 hours of trading, the market capitalization has eroded by over 6 lakh crore rupees. This sharp decline comes after a period of optimism in October, when the Sensex recorded a gain of over 4 percent, while however, the momentum has now reversed, and an atmosphere of uncertainty pervades the market.

Three Consecutive Days of Decline

The share market has experienced a continuous fall for the third consecutive day. According to data, the Sensex has dropped by more than 750 points, while the Nifty has seen a reduction of over 271 points. On Friday's trading session, the Sensex initially plunged by a significant 640 points but later recovered partially to close with a modest decline of 94. 73 points. Similarly, the Nifty, after falling by over 191 points, closed down by 17. 40 points. This indicates persistent selling pressure in the market, although some. Buying at lower levels helped mitigate the severity of the fall.

Sensex and Nifty Performance Metrics

On November 3, the Sensex closed at 83,978. 49 points, which decreased to 83,216. 28 points by Friday's close. This translates to a total decline of 762. 21 points for the Sensex over the three days. During Friday's trading session, the Sensex even touched a low of 82,670. 95 points, pushing the cumulative three-day decline to over 1,300 points before recovering, while for the Nifty, it closed at 25,763. 35 points on November 3 and ended at 25,492. 30 points on Friday, marking a total drop of 271, while 05 points over the three days. The Nifty also hit an intraday low of 25,318. 45 points on Friday.

Key Factors Behind the Market Downturn

Several significant factors are contributing to the current slump in the share market, while a major driver of this decline is the continuous selling by Foreign Institutional Investors (FIIs). FIIs have initiated profit booking, selling Indian equities worth 6,214 crore rupees so far in November. Since July, they've collectively sold approximately 1. 4 lakh crore rupees in the cash segment. This selling spree is occurring amidst fluctuations in the Indian rupee and diminishing expectations of further interest rate cuts by the US Federal Reserve.

Weakness in Global Markets

Another crucial reason for the Indian market's decline is the prevailing weakness in global markets. Investor sentiment has shifted regarding elevated valuations on Wall Street, while on November 7, major Asian stock markets, including Japan's Nikkei and Korea's Kospi, fell by 2 percent each, while Wall Street recorded an overnight decline of up to 2 percent. The decreasing likelihood of further interest rate cuts by the US Federal Reserve is also impacting global investors, while Also, the longest US government shutdown since October 1 is creating a dearth of economic data and fostering uncertainty in the market.

Impact of Economic Indicators

Recent economic indicators are also not providing much support to the share market, while india's Gross Domestic Product (GDP) grew at an impressive rate of 7. 8 percent in the first quarter of the current fiscal year (Q1 FY26), which is a positive sign, while however, the nominal GDP growth rate decelerated to 8. 8 percent in Q1 FY26, compared to 9. 6 percent in the same period of the previous fiscal year. This indicates that some underlying weaknesses persist in the economy. On top of that, India's service sector activity fell to a 5-month low in October, after peaking in August, signaling a slowdown in economic activity. The GDP figures for Q2 FY26 are scheduled to be released on November 28, and the market will be closely watching these announcements.

Performance of Tech and Commodity Companies

The global market rally this year has been primarily driven by technology companies, fueled by strong optimism surrounding Artificial Intelligence (AI). India, however, lacks a significant presence of strong global companies in this sector. Experts suggest this is one reason why Indian equity markets have underperformed globally this year, while shankar Sharma, founder of GQuant, an AI-tech company and prominent investor, noted that globally, two sectors—tech and commodities—are driving this rally, and India doesn't have many strong names in these areas, causing the Indian market to lag.

Uncertainty Over India-US Trade Deal

Uncertainty surrounding a potential India-US trade deal is also influencing investor sentiment. Despite several positive signals and apparent camaraderie between Prime Minister Narendra Modi and US President Donald Trump, the trade agreement has yet to be finalized. On Thursday, Trump stated that discussions with Prime Minister Modi on the India-US trade deal were progressing well and that Modi might visit the US next year. However, the lack of a definitive conclusion to this agreement continues to create uncertainty among investors. This ambiguity remains a significant impediment for the Indian share market, as investors prefer clarity and stability.