US poll uncertainty roils mkts

Benchmark indices nosedive 2% - most in a month - before recouping half the losses

- SUNDAR SETHURAMAN

Benchmark indices dropped as much as 2 per cent before recouping half the losses, as uncertainty around the tightly contested US Presidential election, sustained selling by foreign portfolio investors (FPIs), and earnings disappointments weighed on the markets. The India VIX index, a gauge for market volatility, spiked by 5 per cent to 16.7, the highest level since August 6.

After declining as much as 1.9 per cent to 78,233, the Sensex finished at 78,782, down by 942 points or 1.2 per cent. The Nifty 50 index recovered from a 488-point, or 2 per cent, slump to end at 23,995, down 309 points or 1.3 per cent. This fall has been the highest for both indices since October 3.

The total market capitalisation (mcap) of BSE-listed companies dropped by ₹6.1 trillion to ₹442 trillion. Since the market highs reached on September 27, mcap has declined by ₹36 trillion.