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BSE Sensex, Nifty50 tank: The Indian equity markets are in the midst of a bull run, but Dalal Street is witnessing days of heavy selloff in between as well. After hitting lifetime highs in trade on Wednesday, both the benchmark indices fell sharply in afternoon trade, with Sensex plunging over 750 points and Nifty below 21,300.
At 2:49 PM, BSE Sensex was down over 750 points or 1.06% at 70,677.40.Nifty50 was down over 240 points or 1.12% at 21,212.20. While BSE Sensex hit an intraday high of 71,913, Nifty50 saw a high of 21,593.
The stock market saw significant selling pressure on Wednesday, retracting from its recent all-time highs despite a positive global market sentiment. Except for the IT and FMCG sectors, most segments experienced declines, with broader markets showing a more noticeable drop compared to Nifty50.Dr. V K Vijayakumar, Geojit Financial Services’ Chief Investment Strategist, commented that although the holiday season is approaching, the market remains active, consolidating at higher levels. The consistent rise in the US market, which set a new high for the Dow, reflects a similar trend. The VIX fear index registering a low at 12 indicates the market’s underlying strength.
He highlighted that valuations in mid and small-cap segments are elevated, posing risks for investors. Focusing on large-caps is recommended for safety in this optimistic period. With declining US bond yields, continued FII investment in Indian stocks is expected, likely resulting in increased FII activity in the New Year. Large caps like RIL, which haven’t been highly involved in the recent rally, may witness increased action, he said.
At 2:49 PM, BSE Sensex was down over 750 points or 1.06% at 70,677.40.Nifty50 was down over 240 points or 1.12% at 21,212.20. While BSE Sensex hit an intraday high of 71,913, Nifty50 saw a high of 21,593.
The stock market saw significant selling pressure on Wednesday, retracting from its recent all-time highs despite a positive global market sentiment. Except for the IT and FMCG sectors, most segments experienced declines, with broader markets showing a more noticeable drop compared to Nifty50.Dr. V K Vijayakumar, Geojit Financial Services’ Chief Investment Strategist, commented that although the holiday season is approaching, the market remains active, consolidating at higher levels. The consistent rise in the US market, which set a new high for the Dow, reflects a similar trend. The VIX fear index registering a low at 12 indicates the market’s underlying strength.
He highlighted that valuations in mid and small-cap segments are elevated, posing risks for investors. Focusing on large-caps is recommended for safety in this optimistic period. With declining US bond yields, continued FII investment in Indian stocks is expected, likely resulting in increased FII activity in the New Year. Large caps like RIL, which haven’t been highly involved in the recent rally, may witness increased action, he said.
The Indian equity markets have been rising steadily on the back of strong macroeconomic fundamentals, a dovish stance and rate cut signal from the US Federal Reserve and the recent state election victories by BJP, which have bolstered prospects of a stable government post Lok Sabha polls 2024.
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