Sensex, Nifty dip as investors remain cautious ahead of US elections

Benchmark stock market indices opened the trading session on a weak note on Tuesday as investors remained cautious ahead of the US presidential elections.
The S&P BSE Sensex was down 125.73 points to 78,656.51 at 10:17 am, while the NSE Nifty50 fell 36.20 points to trade at 23,959.15 points.
All the other broader market indices were trading in negative territory as volatility remains on the higher side.
Nifty Metal was the only significant gainer among sectoral indices, while some auto stocks also gained.
The top five gainers on the Nifty50 were Tata Steel, IndusInd Bank, JSW Steel, Tata Motors and Maruti.
On the other hand, the top losers were Adani Ports, Trent, HDFC Life, Apollo Hospitals and ITC.
While US elections have kept Indian stock markets on the edge, experts believe there are other domestic factors at play as well.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “With all attention focused on the outcome of the US presidential election, perhaps the more important domestic economic issue is not getting the importance it deserves.”
“It is important to understand that India’s underperformance is striking: while S&P 500 is up 20.45% YTD Nifty is up by only 10.36% YTD. Clearly, domestic issues are weighing on markets. With two thirds of Nifty 50 companies missing their earnings estimates in Q2, Nifty 50 earnings for FY25 has been drastically revised down to less than 10% from the consensus 15% earlier,” he noted.
“With this kind of earnings downgrade it would be difficult to sustain the current valuation. This is the rationale of the relentless FII selling which might continue for some more time,” Vijayakumar explained.
He advised investors to opt for a safe strategy of “remaining investors and accumulating stocks in segments which can weather volatility”.
“Apart from leading financials, auto stocks like Eicher Motors and M&M have exhibited earnings momentum and improving prospects, going forward,” he said.