Due to weak demand, high input costs, and greater competition that impacted firm profitability, Indian stocks saw a sharp decline, with the Sensex and Nifty falling. The downturn was made worse by significant selloffs by foreign investors, which were exemplified by a precipitous drop in IndusInd Bank shares after poor results.
Following unprecedented selloffs by foreign investors following September-quarter earnings that indicated a clear downturn in demand across a wide range of industries, including autos, fast-moving consumer products, and even traditional banking, a month-long decline in Indian stocks accelerated on Friday.
While unexpectedly high loss provisioning at a major bank highlighted the likely stress in unsecured loans that have recently been under regulatory scrutiny, weak demand, increased competition, and high input costs have put pressure on margins in industries with a consumer focus, leading to earnings downgrades.