Despite the massive crash, analysts are not discounting the bulls. They believe this is a buy-on-dip market, and short-term correction will trigger new buying, as economic fundamentals have improved, with more focus on industrials and cyclicals.
The 30-share pack Sensex plunged 1,145.44 points or 2.25 per cent to close at 49,744.32. The index slipped below the 50,000 mark after nearly three weeks. Its broader peer NSE Nifty cracked 306.05 points or 2.04 per cent to 14,675.70.
“Rising economic restrictions from spike in virus cases and weak global cues hit the domestic market sentiment. The rate of market fall was aggravated by a sharp rise in volatility, being a monthly F&O expiry week. FPI inflows which was leading the rally slowed down due to global vulnerabilities from rising bond yield & inflation,” said Vinod Nair, Head of Research at Geojit Financial Services.
Overall, investors lost Rs 3.80 lakh crore at the end of the day as the market capitalisation of BSE-listed companies came down to Rs 200.18 lakh crore.
Market at a glance
- India VIX, the measure of volatility, surges 14% to 25.47
- Metals shine amidst a sea of red; Nifty Metal sole sectoral gainer
- RIL, HDFC, TCS biggest drags on Sensex; HDFC Bank provides support
- Torrent Power climbs 4% after grabbing Dadra & Nagar Haveli discom
- Eicher Motors emerges top bluechip loser; down over 5%
