On November 1, 2023, the Indian stock market witnessed a continuation of losses, with the Sensex shedding 283 points and the Nifty ending below 19,000​​. In recent sessions leading up to this date, the Nifty experienced a pullback from the previous week’s low of 18,838, but this movement lacked strong supporting data from either short covering or fresh long formations, indicating that the upswing might merely be a pullback as momentum readings were in the oversold zone​​.

For the year 2023, the Indian stock market has been attractive to foreign institutional investors, propelling the NIFTY 50 and the BSE Sensex to their all-time highs​​. The main stock market index in India, SENSEX, increased by 2942 points or 4.84% since the beginning of 2023 according to data updated in October 2023​​. The forward price-earnings (PE) ratio for MSCI India stood at 22 times, which is 30% higher than the average of the past decade. Analysts from Goldman Sachs predicted that the Nifty would reach 20,500 by the end of 2023, propelled by a 15% earnings growth in 2023–2024, although there may be a small value drop as India’s market multiples may be supported​​.

The highlighted trends reflect a mixture of optimism driven by foreign investment and earnings growth, alongside concerns as seen in the pullback and loss trends around November 1, 2023.