New Delhi: The stock markets witnessed selling sentiments across the sectors for the second consecutive day in a row, plunging the benchmark indices BSE Sensex & NSE Nifty 50 by more than 700 and 200 points.
This comes after a recent strong rally in the stock markets, which pushed it towards new highs and the indices also recorded all time-highs of the decade.
In the opening bell today, Sensex & Nifty both opened in the red and continued to slide during the day. At 2 PM, the Sensex had plummeted by over 700 points while Nifty saw decline of over 200 points. At the closure, it saw little correction, though the plunge stayed over 500 points & 145 points respectively.
The weakness in the markets was across the segments and not even small-cap & mid-cap stocks were spared in the free-fall.
Sectoral indices including Nifty Bank and Nifty Financial Services suffered a jolt of 1% while the Realty sector topped the charts, sinking more than 2 percent.
Among the handful of stocks which continued to shine despite free-fall included Sun Pharma and Divi’s Laboratories. Out of 30-share Sensex, only 2 stocks were in green.
Why the downturn after strong rally?
Notably, the weakness in markets despite global brokerage firm Morgan Stanley upgrading India to overweight category, second such upgrade since March 31.
Market experts believe that the current downturn in stocks is because of distress in global markets. Notably, the US markets have plunged significantly after Fitch’s downgraded America’s credit ratings.
Fitch had lowered the US sovereign credit rating from AAA to AA+ and this reflected in concluding market sessions, globally.
For the unversed, the Indian stock markets saw a strong surge as Sensed zoomed from 60,000 to 65,000 mark in just couple of days while Nifty also registered good upside. Analysts expect the market momentum to continue further, though, it may take some time. Next wave of surge may come after some consolidation in markets as investors would be keenly watching economic indicators like Q1 earnings, RBI monetary policy & FDI inflows.
