Sensex may bottom out soon after falling 2,900 points in 5 days, say analysts
Sensex fell over 500 points today
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Indian shares extended losses to the fifth day as investors continued to book profits ahead of the upcoming February 1 Union Budget. The blue-chip NSE Nifty 50 index fell 1% to 13,817.55 while BSE Sensex closed 535 points lower at 46,874. In five session, Sensex has lost about 2900 points.
Analysts are however hopeful that the selling pressure could ebb going forward. Markets may see a breather on Friday after the recent slide but volatility would remain high. Nifty respected the support zone at 13,700 but sustainability above the same is critical for a decisive rebound. Considering the prevailing scenario and upcoming event i.e. Union Budget, we suggest continuing with hedged positions and preferring index majors over others, said Ajit Mishra, VP - Research, Religare Broking Ltd.
Volatility is normally higher on the last two days of monthly expiry but this time the fall with higher volatility show cautiousness amongst market participants before the Budget event. Earnings are coming out better-than-expected but profit-booking is seen in most companies that have declared results so far barring a few cases, according to Rusmik Oza, executive vice-president and Head of Fundamental Research at Kotak Securities.
Axis Bank, Titan, IndusInd Bank, HDFC Bank, Dr Reddy s, HDFC and Asian Paint were the major laggards among the 30-share frontline companies list, falling up to 4 per cent.
In the broader market, the smallcap and midcap indices fell up to 1.38 per cent. Sectorally, banking stocks declined 2.93 per cent, followed by finance (2.72 per cent), metal (2.54 per cent), realty (2.28 per cent) and auto (2.11 per cent).
Investors wealth plunge over Rs 8 lakh crore in four days
Recordings its fourth straight session of loss on Wednesday, the Sensex tumbled 937.66 points or 1.94 percent to close at 47,409.93. In the four straight sessions, the benchmark has fallen by 2,382.19 points or 4.78 percent. PTI January 27, 2021 / 07:00 PM IST
Investors wealth eroded by more than Rs 8 lakh crore in four consecutive sessions of stock market loss.
Recordings its fourth straight session of loss on Wednesday, the Sensex tumbled 937.66 points or 1.94 percent to close at 47,409.93. In the four straight sessions, the benchmark has fallen by 2,382.19 points or 4.78 percent.
Tracking the muted sentiment, the market capitalisation of BSE-listed firms declined by Rs 8,07,025.09 crore to Rs 1,89,63,547.48 crore in these four days.
The BSE Sensex scaled the 50,000-mark for the first time on Thursday. However, widespread profit booking and weak global cues hit markets and the Sensex tanked 1.5 per cent or 746 points on Friday while NSE Nifty dropped below 14,400 level., , markets, volatile, bse sensex, indian shares
Indian markets witnessed a highly volatile trade and closed in red due to weak global market and reports of Indo-China border tension. The downside was equally contributed by all the sectors except pharma.