Dalal Street Corner: Market sees 3rd biggest fall since August 2021; what should investors do on Tuesday?
The Indian markets on Monday witnessed the third biggest fall on an intraday basis in 2021 since August 24, 2021 amid heavy sell-off from foreign investors and the rising cases of new covid variant Omicron.
![Dalal Street Corner: Market sees 3rd biggest fall since August 2021; what should investors do on Tuesday? Dalal Street Corner: Market sees 3rd biggest fall since August 2021; what should investors do on Tuesday?](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_850x478/public/2021/12/20/169936-sensex-2.jpg?itok=WD6znFYc&c=9a638d3c2fc8a0ec81c423e248917405)
The Indian markets on Monday witnessed the third biggest fall on an intraday basis in 2021 since August 24, 2021 amid heavy sell-off from foreign investors and the rising cases of new covid variant Omicron.
The benchmark indices — Sensex and Nifty50 — closed above day’s low with Sensex ending nearly 1200 points lower and Nifty50 above 16600-mark, an important support level. Even the broader markets underperformed the benchmarks as both mid and small-cap slipped around 4 per cent at the close.
Market breadth firmly in favour of declines, as advance-decline ratio stood at 1:8, while the BSE companies erase market cap of Rs 7 lakh crore today and Rs 12 lakh crore in last two days.
Since October 19, 2021, FIIs have sold Rs 88841 crore, and with that Sensex and Nifty each slipped 2 per cent, while Nifty Bank down 3 per cent, while mid and small-cap each declined over 4 per cent.
Only 3 stocks on Nifty50 closed in the green, of which Cipla jumped most in otherwise negative market, up over 4.17 per cent, followed by HUL up almost 2 per cent and Dr Reddy up 1 per cent.
Nifty heavyweights such as BPCL slumped most by over 6 per cent, followed by Tata Steel and Tata Motors each down over 5 per cent, while IndusInd Bank dipped over 4 per cent at the market close. Similarly, except a few pharma stocks, most futures and options stocks close with huge cuts.
In the broader markets, AU Small Finance Bank, L&T Tech, Delta Corp, Bandhan Bank, Firstsource were the top midcap losers during Monday’s session.
In the IPO segment, Supriya Lifescience initial share-sale subscribed 29 per cent on the last day till afternoon. While the market on Tuesday to witness listing of MapMyIndia IPO and launch of new IPO of CMS Info System.
Vinod Nair, Head of Research at Geojit Financial Services said, “India has been undergoing a phase of consolidation in the last two months. Currently sell-off is due to rapid rise in FIIs selling triggered by hawkish world central banks’ policy, cautious view on Indian market due to high valuation compared to peers and drop in retail inflows.”
Nair feels that the market is reaching the last phase of this consolidation in terms of price correction. Some pockets have become fair however the overall market is still trading at the upper-hand which will continue to affect the performance of broad market, in the short-term, he added.
Markets reacted to the news of a sharp jump in the COVID cases globally which may result in a lockdown, Ajit Mishra, VP - Research, Religare Broking Ltd said in his post market comment, further adding that the continuous outflow of the foreign fund was also weighing on the sentiment.
“We reiterate our cautious view on markets and suggest focusing more on risk management. Investors, on the other hand, can start accumulating quality stocks selectively from a long term investment perspective. Nifty has the next major support at 16,300 levels,” Mishra said.
Technically, the Nifty has slipped below the Horizontal Line and prior swing low of 16782.40 levels, which indicates a further weakness for the coming day, Sachin Gupta AVP, Research Choice Broking.
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05:31 PM IST