Even as benchmark indices – Sensex and Nifty – fell sharply, investor wealth was eroded by Rs 1.92 lakh following a plunge in the value of stocks. The market capitalisation of the BSE-listed companies declined by Rs 1,92,530.74 crore to Rs 1,51,60,885.97 crore. Sensex fell 495.10 points to close the day at 38,645.18, while Nifty plunged 158.35 points to 11,594.45.
Yes Bank, Indusind Bank, RIL, ICICI Bank, HDFC and Axis Bank were among the 23 scrips that closed with losses and fell up to nearly 7 per cent on the BSE Sensex. While 1,799 scrips declined and 714 advanced, 184 remained unchanged on the BSE on Monday.
Even as the stock market seemed overbought for some time now, a huge flow of foreign funds covered up the weakness, veteran investor Sandip Sabharwal told Financial Express Online. Just a trigger was needed for the markets to react negatively and rise in crude prices today did the same, he added. Over the next few days, the correction in stock markets should play out and thereafter the markets may move upwards, he added.
Commenting on the sharp fall in Sensex and Nifty today, Milan Vaishnav, CMT, MSTA told Financial Express Online said the correction seen today is not surprising at all.
Concerns are being raised on important technical developments since last week in the form of persistent negative/bearish divergence of NIFTY against its lead indicators, he added.
NIFTY has been defying its usual inverse relation with VIX which is up almost over 12% since last 6-7 trading session. With these negative technical indications, the rising Brent crude price along with weakening Rupee adds further pain in the Markets which are otherwise also technically prone to some corrective view , he also said.