Markets Crash: Sensex, Nifty Down by over 1%, Hero MotoCorp, BHEL, TVS Motors Among Major Laggards

Markets Down: Domestic Benchmark indices witnessed a bloodbath on Dalal Street as broader markets declined on Monday. Both BSE Sensex and NSE Nifty plummeted by over a per cent, with the auto sector emerging as the worst-performing sector.

At 12:05 pm, BSE Sensex was trading at 84,622 level down by nearly 949 points, whereas NSE Nifty declined by 266 points and was trading at 25,912 level mark.

From the Sensex pack, Reliance, ICICI Bank, Mahindra and Mahindra, Axis Bank and Tech Mahindra were among the major laggards.

Why is stock market down today?

Analysts believe that the domestic market might move into a consolidation phase in the near-term primarily because of the revival in China's economy. While India did emerge as one of the top spots in global markets, eventually leading to significant flows by FIIs (Foreign Institutional Investors), China's steady improvement coupled with cheap valuations is now attracting investors heavily.

"Market is likely to move into a consolidation phase in the near-term. One significant factor that is influencing foreign portfolios is the outperformance of the Chinese stocks which is reflected in the massive surge in the Hang Seng index by around 18 per cent in September. This surge has been triggered by hopes of revival in the Chinese economy in response to the monetary and fiscal stimulus announced by the Chinese authorities," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The Hang Seng Index has surged by over 20 per cent just this month. Meanwhile, the Shanghai Stock Exchange has also followed a similar trajectory during the same period.

However, analysts remain optimistic about India's market outlook and believe that any dips in the domestic market should be viewed as buying opportunities.

"FII selling is unlikely to impact the Indian market significantly since the massive domestic money can easily absorb whatever the FIIs are selling. Investors can use dips to buy quality largecaps which are fairly valued." he further added.