It was a sea of red on Dalal Street on Wednesday as investors were left looking for cover in a broad-based sell-off. The S&P BSE Sensex plunged 906 points, or 1.23 per cent, to end at 72,762 levels, while the Nifty50 broke below the 22,000-mark to end at 21,998, down 338 points or 1.5 per cent.
The indices hit intraday lows of 72,516 and 21,906, respectively.
The meltdown was stronger in the broader markets where the BSE MidCap and SmallCap indices sunk 4.2 per cent and 5.1 per cent, respectively.
With this, the BSE m-cap has plummeted by Rs 20.69 trillion in three days.
Among sectors, the Nifty Media, and Metal indices tumbled 5.6 per cent each, the Nifty Realty index 5.3 per cent, and and the Nifty Auto 2.8 per cent.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd., “Sensex and Nifty’s decline today can be linked to a number of causes, including Investor attention ought to be directed toward the market’s ongoing downturn, especially in the small-cap & mid cap space. For several months now, there has been concern over the inflated valuations in these categories, which are being caused by the irrational optimism of individual investors. However, it took the regulator Sebi’s forceful message to bring about a correction. Continued selling and mutual fund activity point to worse suffering ahead. Another factor contributing to the decline is the increase in US bond yields after US CPI inflation data and selling pressure on index heavyweights like Reliance Industries (RIL) and a few Tata group members.”
Global Cues
With estimates being largely met and no surprise jump in inflation, US indices gained overnight led by Nvidia-rally. The Dow rose 0.6 per cent, S&P 500 1.12 per cent and the Nasdaq 1.54 per cent.
Hang Seng, Kospi and ASX 200 also held nominal gains in Asia this morning. Nikkei was seen paring gains to dip 0.2 per cent.
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