Amid global concerns, Indian equities registered broad-based sell-off in Monday's trade (August 5, 2024). Nifty at the close ended managed to end above 24,050 levels, down 2.68 per cent or 662 points, while the Sensex crashed 2,222.55 points or 2.74 and closed at 78,759.4. 

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Experts attribute this sharp correction seen to be largely a meaningful one to weak global cues wherein major price moves are seen across most large markets led by Nikkei which closed down 12.4 per cent today. The sentiment also reflected in the US markets futures with Nasdaq futures down 6 per cent. 

Vinod Nair, Head of Research, Geojit Financial Services pointed out that the global market was jolted into a cautious mode by recessionary fears in the US following disappointing job statistics and an unwinding of carry trade following the rapid rise of the yen. The effects were felt by the domestic market as well and is expected to impact in the near-term. Nevertheless, the market showed resilience at day's low and recovered to close above 24,000.

Historically, the Indian market had showcased a solid track record of outperformance compared to the global market, in the long-term, he added.

Bank Nifty-the gauge of banking sector's performance also tumbled 2.45 per cent and closed down at 50,092.1, a significant over 3,200 fall from 52-week high.

Broader markets, meanwhile, also cracked aggressively and at the close were down up to 4 per cent. 

The top gainers from the Nifty pack during trade included stocks like HUL, Nestle, Tata Consumer Products and HDFC Life, while laggards were Tata Motors, ONGC, Adani Ports, Tata Steel and Hindalco.

European stocks largely followed suit and traded with cut of up to 2.3 per cent at the last count.

 Prashanth Tapse, Senior VP (Research), Mehta Equities cautioning trading community said such corrections in the past were temporary and we saw the market rebounding fast. But we fear that this time it will be quite different from history. Our advice for traders is trading positions should be trimmed or strict stop losses should be observed on either side of trade and option writers should be careful.

Investments with a 2/3-year horizon can be considered to allocate funds in a phase wise manner, he said. Technically, Nifty closing below 24000 would be seen as sentimentally negative with support at 23800 and any move above 24,125 would push the index towards 24,200 and 24,300 levels, added Tapse.