Market Cap of BSE companies fell by whopping Rs.6.64 lakh crore between Dec 18 and Dec 21, says HDFC Securities.

India's equity benchmark indices fell the hardest in seven months today as resurgent fears over a new strain of Covid-19 virus found in the UK spread panic across the globe. Basket selling by FPIs likely triggered the sharp fall in Indian markets. At close today the Nifty was down 432.10 points or 3.14% at 13328.40. Indian markets performed the worst among the Asia pack. Market Cap of BSE listed companies fell Rs.6.64 lakh crores or 3.6% between Dec 18 and Dec 21.
 
Volumes on the NSE were the highest since Nov 27. All sectoral indices ended in the negative with PSU Bank, Media, Metals realty, Auto, Banks and Pharma indices being loss leaders. Broad market indices line Midcap and Smallcap fell more than the Nifty.
 
Asian stocks ended mostly lower today after a new strain of Sars-CoV-2 virus has been found in the U.K. that is 70 percent more infectious. Wavering trade negotiations between Britain and the European Union and rising U.S.-China tensions overshadowed positive news of U.S. lawmakers reaching a deal for a nearly $900 billion Covid-19 financial package to help struggling households and businesses.
 
Nifty has formed a large bearish candle which has engulfed the high low range of the previous 9 sessions. In the process two upgaps formed in this period have been filled nullifying the bullishness. The advance decline ratio on the NSE on Dec 21 was the worst since March 23, 2020 when the Covid fears were at the peak. This suggests across the board panic selling/profit booking.
 
A large fall today does not augur well for the week. A breach of 13209 on the Nifty could result in another 200-250 point fall.
 
Markets ended with heavy losses today after a bounce back seen in the morning session. Selling pressure accelerated after a high of 13778 was touched. The Nifty fell more than 600 points from the highs of the day to touch a low of 13131. A recovery towards the end of the session helped to curb the losses. The Nifty finally lost 432.15 points or 3.14% to close at 13,328.4.
 
Broad market indices like the BSE Mid Cap and Small Cap indices lost more, thereby underperforming the Sensex/Nifty. Market breadth was negative on the BSE/NSE.
 
All the sectoral indices ended in the red. The top losers were the BSE Metal, Oil and Gas, Realty and Auto indices.
 
Major Asian markets have closed on a mixed note. European indices like the FTSE, CAC and DAX have ended lower.
 
Technically, with the Nifty correcting sharply and closing below the crucial supports of 13447, the index is now in a short term downtrend. Immediate supports are now at 13131. Any pullback rallies could find resistance at 13447-13500.