Investor wealth falls below Rs 400 lakh crore for first time in nine months, should you 'sell on rise'?

The ongoing correction dragged the market cap of BSE-listed firms below Rs 400 lakh crore (on a closing basis) for the first time on Tuesday since June last year. The market capitalisation of the BSE firms stood at Rs 394 lakh crore on June 4 last year. In the current session, investor wealth stood at Rs 398 lakh crore against Rs 400 lakh crore in the previous session.

The market closed lower for nine sessions out of last ten sessions. Sensex ended 29 pts lower at 75,967 and Nifty closed 14.20 pts lower at 22,945 on Tuesday. The minor correction in the current session comes after a day of gains preceded by eight sessions of losses.

With the current phase of correction, Sensex is down 2.78% and Nifty has lost 2.96% in 2025.

But smallcap and midcap stocks have seen the big correction with their BSE indices falling 19.56% and 14.18%, respectively in 2025. FIIs moving out of India, US President Donald Trump imposing tariffs, lacklustre Q3 earnings season and moderate economic growth hurt sentiment in midcap and smallcap stocks this year.

Ajit Mishra – SVP, Research, Religare Broking said, "The attempts of stabilizing the Nifty index around the January low of 22,800 has raised hopes for a potential rebound. However, the continued underperformance of broader indices remains a key concern. We maintain our preference for large-cap and larger mid-cap stocks that are demonstrating relative strength within their sectors while advising against bottom fishing in the broader market."

Nandish Shah - Deputy Vice President, HDFC Securities said, "Short term trend of the Nifty is still bearish as it is placed below its important short term moving averages. A potential reversal signal would be a move above the 5-day EMA, currently placed around 23,020. Sustained trading above this level could trigger a pullback towards 23,235. Conversely, a break below 22,725 could reignite the downtrend."

Rupak De, Senior Technical Analyst at LKP Securities said, "Nifty witnessed another day of volatility as the index failed to take a clear direction. In the short term, Nifty might remain a 'sell on rise' as long as it stays below 23,150. Support is placed at 22,800, and a fall below this level might trigger further correction. Immediate resistance is placed at 23,000."

In the current session, stocks such as NTPC, Tech Mahindra, Zomato, PowerGrid and Kotak Bank led the gainers on Sensex, rising up to 3%. On the other hand, IndusInd Bank, UltraTech Cement, M&M, HUL, TCS and Sun Pharma were the top Sensex losers, losing up to 2.38%.

As many as 51 stocks hit their 52-week highs today. On the other hand, 787 shares fell to their 52-week lows on BSE today.

Market breadth was in red. Out of 4,064 stocks traded, 1032 stocks ended in the green on BSE. Around 2918 stocks were trading in the red while 114 stocks remained unchanged.

Around 4 stocks hit their lower circuits as the stock market ended lower. On the other hand, 15 shares hit their upper circuit limits amid weak sentiment on BSE.

BSE midcap index fell 74 pts to 39,858. BSE small cap stock index crashed 772 pts to 44,384 level, indicating weakness in the broader market.

Foreign institutional investors sold Rs 3,937 crore worth of equities on a net basis on Monday, while domestic investors bought Rs 4,759 crore of shares, as per provisional NSE data.

Previous session

The Indian equity indices ended higher after eight sessions of losses in the previous session. Sensex climbed 57 pts to 75,996 and Nifty rose 30 pts to 22,959, reflecting minor recovery on Dalal Street. Top Sensex gainers were Bajaj FinServ, IndusInd Bank, PowerGrid, Adani Ports and Zomato shares rising up to 3%.