Benchmark stock market indices fell sharply on Monday; S&P BSE Sensex fell over 1,000 points due to sustained foreign outflows.

S&P BSE Sensex index was traded at 78,678.96 points, with a decrease of 1,045 points, and NSE Nifty50 index was traded at 23,962 points, with a decrease of 342.35 points.

Most broader market indices, including small- and mid-cap stocks, fell sharply amid rising investor concerns.

Analysts have previously stated that markets may remain under pressure in the near term due to various factors, especially the US presidential elections. Geojit Financial Services Chief Investment Strategist Dr. VK Vijayakumar said: “In the next few days, global markets will focus on the US presidential elections and there may be volatility in the short term in response to the election results.”

“But this will likely be short-lived and economic fundamentals such as US growth, inflation and Fed action will influence the market trend,” he added.

Vijayakumar also stated that the Indian market is primarily “facing headwinds due to slowing earnings growth.”

“Good EPS growth based on Q2 results may fall below 10% in FY25, which will make it difficult to sustain current valuations of around 24 times estimated FY25 earnings. FIIs may continue to sell in this challenging earnings growth environment “And that could limit any surge in the US.” market,” said Vijayakumar.

“Continuing to invest in highly valued large caps is the safe option for investors in this difficult situation,” he added.

The top five winners in Nifty50 were M&M, Tech Mahindra, Cipla, Dr Reddy’s and IndusInd Bank. On the other hand, the biggest losers were Bajaj Auto, Hero MotoCorp, Sun Pharma, BPCL and Reliance.