Yesterday, on October 11, the Sensex and Nifty ended the day lower due to continued selling by foreign investors. However, midcap and smallcap indices managed to stay in positive territory. The Sensex concluded the day at 81,381, marking a fall of 230 points, while the Nifty closed at 24,964 after falling by 34 points.

The Nifty Metal Index saw a 1% increase due to the anticipation of China possibly revealing a 2 trillion yuan relief package (equivalent to about $283 billion or roughly Rs 24 lakh crore) today, October 12, to stimulate its economy, real estate sector, and stock market.

Despite this, uncertainty regarding the relief package persisted, causing China's Shanghai Composite Index to close 2.55% lower yesterday, October 11. Experts say that if the Chinese government comes out with the relief package today, the outflow of foreign investors from the Indian stock market could further increase.

In September, China had announced a relief package of Rs 12 lakh crore, which led the Indian markets to fall by 5% in 10 days. Analysts are speculating that if a package twice as large is issued this time, its impact could also be double. Due to continuous selling by foreign investors, the rupee has dropped below 84 for the first time against the dollar. The value of one dollar has reached Rs 84.09.

Foreign investors have sold shares worth Rs 69,395 crore since September 27, after the announcement of the relief package in China. Domestic investors bought shares worth Rs 71,324 crore during this 10-day period, but despite this, the Sensex has fallen by more than 5%. This decline is attributed to heavy selling by investors in the F&O segment.