BSE-listed companies' M-cap erode by Rs 2.5 lakh cr since Budget day; turns effectively negative in 2022 so far

With selling pressure continued for the third day on Monday, the frontline indices have turned effectively negative so far in this year, both Sensex and Nifty50 have slipped almost 3 per cent each.  

The BSE Sensex on Monday closed over 1000 points to 57621, while Nifty50 down over 300 points to 17213-level at the market close. In comparison, the BSE Sensex on December 31, 2021, had closed at 58253-level and Nifty50 at 17,410-mark.   

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In the month of January, both Sensex and Nifty50 were down by around 0.3 per cent mainly due to pre-run of Budget 2022. The analysts see the weakness in markets ahead of Budget 2022 as obvious, however, it jumps amid the overall sentiment came through Budget. 

Similarly, the investors turned poorer by over 2.5 lakh crore on Monday as the BSE-listed companies market capitalization fell to Rs 264.84 lakh crore as compared to Budget Day.  

On February 1, 2022, the budget-day, the over market-cap of listed companies was Rs 267.4 lakh crore, as per the data available on the BSE.   

Several analysts also see the market may continue its volatility mainly due to two reasons: weak global cues and RBI MPC meet decision later this week.  

Naveen Kulkarni, Chief Investment Officer, Axis Securities said, “We expect that the markets will continue to remain volatile amid the recent interest rate movements globally. Most emerging markets will continue to witness FPI outflows and currency depreciation in the short term.”  

Similarly, Vinod Nair, Head of Research at Geojit Financial Services said, “the US bourses were under pressure as strong US jobs data gave rise to fears of sharper than expected Fed rate hikes, resulting in a spike in the bond yields.”  

On technical terms, Rupak De, Senior Technical Analyst at LKP Securities estimated, Nifty may find resistance at 17400 going ahead; if it remains below 17400, and weakness in the market may be seen. On the lower end a closing basis support is pegged at 17000.