Indian investors are in a state of shock after market took a U-turn in the last six sessions. Sensex has slipped 2,749 points or 7% in merely six days and erased nearly one fifth the gains it logged in the previous six months. Sensex rallied 13,321 points or 51.27% from historic lows of 25,981 hit on March 23 to 39,302 on September 16.
Investors have lost Rs 11.32 lakh crore in last six sessions. Market cap on BSE fell to Rs 148.76 lakh crore today against market cap of Rs 160.08 lakh crore on September 16.
That is nearly one-fifth the gains investors made since the crash of March 23.
Till September 16, investor wealth rose by Rs 58.22 lakh crore to Rs 160.08 lakh crore on BSE.
The partial unwinding of gains in six sessions has been led by a resurgence of coronavirus cases in the UK and Europe, and on concerns over delay in economic recovery. Investors were worried that the government in India might consider bringing in fresh COVID-19-related restrictions that could hurt businesses. Finance ministry was reassessing its earlier optimism about a V-shaped economic recovery, a media report said which also drove the bulls out of market.
The weak investor sentiment was reflected in the market crash today. After five continuous sessions of losses, Sensex lost further ground and settled 1,114.82 points or 2.96 per cent down at 36,553.60.
Nifty too lost 326.30 points or 2.93 per cent to close at 10,805.55. Barring Hindustan Unilever, all Sensex components ended in the red.
IndusInd Bank was the top laggard, tumbling over 7 per cent, followed by Bajaj Finance, M&M, Tech Mahindra, TCS and Tata Steel.
Nifty may slide further in the near future, said an analyst at Sharekhan.
"Nifty opened on a negative note and traded with downward bias throughout the day. On the way down, it breached the lower end of the short term falling channel i.e. 11020 as well as the psychological mark of 11,000. Going ahead, the index not only achieved the short term target of 10,882 but also slid below that. The Nifty halted close to its 200 DMA, which is at 10760. So, that's an important support to watch out for which may provide a near term relief to the bulls. The overall outlook, however, continues to be bearish with the subsequent target at 10650, " Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan said.
Number of stocks hitting lower circuit on BSE rose to 361 compared to 161 which hit their upper circuits today.
Investors lost Rs 3.95 lakh crore today with BSE market cap falling to Rs 148.76 lakh crore. On September 23, market cap on BSE stood at Rs 152.71 lakh crore. Market breadth was hugely negative with 553 stocks rising against 2,046 falling on BSE.
Total 69 stocks hit their 52 week highs against 69 touching their 52 week lows. Number of stocks hitting lower circuit on BSE rose to 361 compared to 156 which hit their upper circuits today.
Deepak Jasani, Head of retail research at HDFC Securities was hopeful that market may move in reverse gear in next two-three sessions. "Nifty has fallen with a second downgap in the present fall. The next support for the Nifty is at 10570. Nifty may see a slower pace of fall now and may reverse its present downtrend over the next 2-3 days, " Jasani said.RIL share falls 2% despite report firm in race to buy British retailer DebenhamsRupee depreciates 26 paise to 73.83 per dollar amid weak equities, fund outflows