Stock Market Today: On the very first trading day of the week, the Indian stock market witnessed a huge decline. Both Sensex and Nifty 50 fell by about 2%. Midcap and smallcap stocks also fell by more than 2%. Sensex opened at 79713 points on Monday morning. But later it fell to 78,255 points in intraday. Similarly, Nifty 50 opened at 24,315.75, which was slightly above the previous close of 24,304.35 points, later it fell to 23,824 points. BSE Midcap and Smallcap indices also fell by 2%.

These five reasons are causing the market to decline.

Due to the fall in the stock market on Monday, the total market cap of the companies listed on BSE fell by Rs 9 lakh crore to Rs 439 lakh crore. All the sectoral indices of the stock market also saw a decline. Nifty Oil and Gas, Media, Consumer Durables and Realty indices fell by 2-3%. At the same time, Nifty Bank, Auto, FMCG, Metal, FMCG and PSU Bank indices fell by 1%. According to experts, five major reasons are being given for the huge fall in the market today.

1. Caution before US election
There is an atmosphere of fear among investors before the US election. Investors are uncertain about the election results. Opinion polls indicate a tough fight between Democratic candidate Kamala Harris and Republican Donald Trump. For the next few days, the market will be focused on the US presidential election at the global level. As the time for the election results comes closer, more instability may dominate the market. However, this period in the market is expected to remain in the short term only. VK Vijaykumar, Chief Investment Strategy, Geojit Financial Services, said, 'Inflation and Fed's action will affect the market trend.'

2. High valuation
The market has been falling continuously for the last few days. However, experts believe that some stocks are still overvalued. According to the stock market platform Trendline, the current PE ratio of Nifty 50 is 22.7. This is more than the average PE ratio of 22.2 for the last two years and is close to the average PE ratio of 22.7 for the last one year. Pankaj Pandey, Research Head of ICICI Securities, said, 'The recent decline has not changed the overall valuation of the market much. High valuations may remain due to the long-term growth and stability of the country.

3. Fed Reserve's decision
The US Federal Reserve will announce its monetary policy on November 7. Recently, the Fed had cut the rate by 50 basis points. Experts say that the interest rate can be cut by 25 basis points. However, this will not cause much volatility in the market. Experts say that it is expected that the US Fed will cut the rate by 25 basis points, but its effect may be less because, during the US elections, candidates are talking about spending more. This will increase the fiscal deficit and the bond yield will increase. This is also not good news for the market.

4. Second Quarter Results The
September quarter results of Indian companies are coming weaker than expected. This has increased the concern of investors. Experts say that there has been a slight decline in the earnings of companies, this is mainly due to commodities, which is affecting the market sentiment at this time. The Indian market is facing a slowdown in earnings growth. According to the second quarter results, Nifty EPS growth may go below 10% in FY25. Given the weak earnings environment of companies, FIIs may continue selling.

5. Technical factor
Experts say that the Indian stock market has tried to come out of the negative trend. However, due to the lack of new triggers, it could not succeed. Anand James, Chief Market Strategy, Geojit Financial Services, said that the level of 24150 was repeatedly held strongly last week, which prevented further decline. But the upward momentum was clearly weak. The reason for this was the resistance in the range of 24,470-24,540 and additional obstacles near 24,660-24,770. We expect the market to challenge these levels this week. But for a broader trend, it is necessary to close above 25,100 for several days, so that the selling can be completely eliminated.