Rs 8.49 Lakh Cr Wiped Off In A Single Day As Investors Panic (Top Losers?)
Monday stock market witnessed a gap-down market opening, the sell-off intensified in the second half of Monday.
It seems that the investors fretted over continued FII selloff and a slew of negative global cues including Russia-UK tensions, rising crude oil prices, inflation, US Fed’s interest rates hike, and supply chain concerns among others.
Sensex And Nifty Performance
The S&P BSE Sensex and CNX Nifty50 settled at 56,406 levels, sliding over 1747 points and 16,843 levels, slipping almost 532 points respectively from its Friday closing levels.
Overall these indexes slipped by 3% during Monday trading session.
Coming to Bombay Stock Exchange (BSE), its market capitalization declined by Rs 8.49 lakh crore to Rs 255.42 lakh crore from Rs 263.90 lakh crore from Friday’s closing levels.
In the case of Nifty, almost all the constituents except TCS and ONGC are in the red zone.
It seems that the banking stocks like SBI Bank, Tata Steel, HDFC, HDFC Life, JSW Steel are taking the brunt.
TCS share, the Nifty bellwether, could manage to eke out 1% gains following the announcement of the record date for its buyback offer on Monday.
Focus On Stock-specific Action
The Chief Analyst-Technical and Derivatives, Angel One Ltd, Sameet Chavan said, “On technical aspects, 17000 is expected to act as the key demand zone as it is being backed by the supporting trend line. And till the market is holding the mark, we remain hopeful for a strong resurgence. On the higher end, 17650 is a crucial supply area and if the market manages to surpass the same in a decisive manner, then we might witness reinforcement in the momentum and could expect Nifty to test the psychological 18000 mark in the near future. Until the decisive breakout is not seen, one should expect a range-bound movement and focus on stock-specific action,”.
Other indexes fared worse than bluechip gauges as both Nifty Midca 100 and Smallcap 100 indices slipped over 3.3% in intra-day trades on Monday.
Not only that, all the sectoral indices witnessed 2-5% losses.
At the same time, Nifty PSU Bank was hammered down by 5.26% and the Metal index traded 4.30% lower in intra-day trades.
Why Would This Happen?
The market tumbled from the highs owing to the concerns over the US rate hike On Friday.
Basically, it corrected to end the week on a negative note with a loss of 0.81 against the previous week’s close.
It seems that the global uncertainty looms over and likely to have challenging scenarios in the market where the volatility is also expected to stay on the higher end.
In the near term, we might witness some outbursts. So, stock selective approach should be taken in the market for the coming week.
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