After opening the day on a negative note, Indian share markets continued the downtrend as the session progressed and ended the day weak.

Benchmark equity indices BSE Sensex and NSE Nifty 50 ended the week's first trading session in the negative territory, down over 1% each.

At the closing bell, the BSE Sensex stood lower by 942 points (down 1.2%).

Meanwhile, the NSE Nifty closed lower by 314 points (down 1.3%).

M&M, Cipla, and SBI were among the top gainers today.

Bajaj Auto, Adani Ports, and BPCL on the other hand were among the top losers today.

The GIFT Nifty ended at 24,108 down by 209 points.

Broader markets ended the day on a negative. The BSE Mid Cap ended 1.3% lower and the BSE Small Cap index ended 1.6% lower.

Sectoral indices are trading negatively with stocks in the realty sector, power sector and telecom sector witnessing selling pressure.

Shares of Crisil, City Union Bank, and Federal Bank hit their respective 52-week highs today.

The rupee is trading at 84.11 against the US$.

Gold prices for the latest contract on MCX are trading 0.5% lower at Rs 78,510 per 10 grams.

Meanwhile, silver prices are trading 0.5% lower at Rs 95,000 per 1 kg.

Here are five reasons why Indian Markets are falling today

#1 US elections & Monetary Meeting

The markets globally are focused on the US presidential elections and analysts believe that there could be a near-term volatility in response to the election outcome. The United States Federal Reserve's monetary policy meeting will be held between 6-7 November.

Investors are cautious ahead of the Federal Open Market Committee (FOMC) decision which could offer more insight on the path of interest rates by the mother market.

#2 China Stimulus

China's National People's Congress (NPC) standing committee will meet between 4-8 November, which will be closely watched by investors globally for details of a raft of stimulus measures that were announced earlier. The Chinese lawmakers are expected to announce one of the largest fiscal packages since the pandemic to boost sentiment in the world's second-largest economy.

#3 Tepid Q2 Earnings

The fast-moving consumer goods (FMCG) sector is grappling with mounting challenges, as recent commentary from industry players points to a demand slowdown across both rural and urban markets.

#4 Auto Stocks Under pressure

Bajaj Auto emerged as the worst hit stock on the Nifty 50 after it tanked as much as 5% on 4 November as investors reacted to the company's weak October sales data. Maruti Suzuki India was down 1.8%, while Hyundai Motor India slipped 1.4%.

#5 Bitcoin Volatility

Cryptocurrency investors anticipate heightened price volatility in Bitcoin linked to the upcoming U.S. presidential election.

Bitcoin surged approximately 12% in October, driven by speculation of a potential second term for Donald Trump.

Many investors have channelled funds into Bitcoin-tracking assets, banking on a Republican win and Trump's possible return to the White House.
 

Why M&M Share Price is Rising

In the news from the auto sector, shares of Mahindra & Mahindra jumped over 5% on 4 November after the company reported a robust 25% year-on-year surge in SUV sales, reaching a record 54,504 units in October-its highest-ever monthly figure.

By 2:30 PM, Mahindra & Mahindra's stock climbed nearly 3% to Rs 2,894, emerging as the top gainer on the Nifty index. With a robust 68% year-to-date surge, M&M has significantly outperformed the Nifty 50, which rose only 10% in the same period.

M&M's auto and tractor segments both achieved record monthly sales in October. The overall monthly vehicle sales, including exports, totaled 96,648 units.

Domestic commercial vehicle sales were recorded at 28,812 units, while tractor sales shot up 30% YoY to 65,453 units.

Three-wheeler sales grew by 5% to 9,826 units. Exports surged 89% to 3,506 units compared to 1,854 in the same period last year.

Domestic tractor sales reached 64,326 units, a notable jump from last year's 49,336. Export numbers remained steady at 1,127 units, slightly up from 1,124 in October 2023.

(Click on image to enlarge)

Exide Industries Shares Hit 5-Month Low

Moving on to news from the auto-ancillary space, battery maker Exide Industries reported a smaller-than-expected second-quarter profit on 4 November, as muted demand from carmakers offset steady replacement demand, sending its shares to a five-month low.

Exide's shares dropped as much as 4.6% to Rs 437.8 apiece after the results were announced, hitting their lowest since 4 June.

Exide is one of India's biggest battery makers and gets nearly 70% of its sales from automotive clients.

But sales of cars to dealers fell for the first time in more than two years in the September quarter, as manufacturers moderated dispatches to help reduce high levels of unsold cars.

"Excess channel inventories... dampened demand" from automotive clients, the company said in a statement.

That led to a revenue miss, with Exide's quarterly revenue of Rs 42.7 bn, falling short of analysts' estimate of Rs 44.4 bn.

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