Sensex and Nifty fell for the fifth consecutive session today as investors booked profit ahead of Union Budget next week. Sensex has lost 3,666 points from record high of 50,134, it touched on January 21. The index fell 891 points (intra day) today to 46,518 against previous close of 47,409.
Now, Sensex has lost 2.05% since the beginning of this year. It turned negative for first time in 2021 on January 27 when it tanked over 1,000 points intra day.
Similarly, Nifty has fallen 1,040 points from all-time high of 14,753 the index touched on January 21.
The 50-stock index declined 254 points intra day today to 13,713 against previous close of 13,967.
Nifty has lost 1.50% since the beginning of this year. It turned negative for first time in 2021 on January 27 when it tanked over 300 points intra day.
Profit booking from record highs, FII outflows , pre budget nervousness and weak global cues have caused massive correction in market.
FIIs have withdrawn Rs 3,089.21 crore in last three trading sessions. On January 22, FIIs pulled out Rs 635.69 crore , followed by Rs 765.30 crore withdrawal on January 25 this week. In the previous session , FIIs sold securities worth Rs 1,688.22 crore in equity market triggering weak sentiment on bourses.
Global markets, which rose after US markets on January 20 hit all-time highs on rising hopes of additional stimulus from the new government, have cooled down as road map for fiscal stimulus remains unclear.
On January 27, Dow Jones closed 633 points lower at 30,303. Nasdaq too fell 355 points lower at 13,270 marking Wall Street's worst session since October.
Sensex and Nifty, which followed a rally in global market and scaled record highs last week, are now correcting in line with their global peers.
Commenting on the outlook in domestic equities, Ashis Biswas, Head of Research at CapitalVia Global Research said, "The market witnessed some lackluster movement where bears look more in control. If the market closes below the levels of 13,800, it is expected to touch the levels of 13600 in the coming week. 13570-13600 will be an important support zone, while 14000 will be an important resistance.
The momentum indicators like RSI, MACD indicating a sideways movement will prevail in the following week. As such the market retains its cautious stance and advises the traders to refrain from building a fresh buying position, until any further decisive movement in the market."