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Sensex, Nifty See Worst Fall in Over a Week After Record Highs

At closing bell on Tuesday, 21 May, Sensex saw its worst fall in nearly three weeks after recording record highs. Nifty too fell below the 11,700 mark.

Sensex skid 382.87 points to close at 38,969.80 while the Nifty ended 119.15 points lower at 11,709.10, as per PTI.

All the 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Media Index’s 2.4 percent fall, BloombergQuint reported.

This correction came after the equity benchmark indices had scaled new heights in the morning trade, with both Sensex and Nifty hitting fresh all-time highs.

The 30-share BSE index gained almost 100 points points to open at 39,449.45 and soon extended gains to hit fresh high of 39,571.73 in morning trade. The broader 50-share NSE index also hit a new landmark, breaching 11,850-mark for the first timer in history.

Both the indices finished at all-time closing highs on Monday as the equity markets surged on back of exit poll predictions which showed favourable trends for the return of Narendra Modi-led NDA government.

Sensex gained a whopping 1,422 points on Monday, posting its biggest one-day gain in 10 years.

Also Read: Exit Polls to Bring Back Animal Spirits in Markets, Say Brokerages

On Tuesday morning, most of the sectoral sub-indices were in the green with Nifty Pharma and Nifty Financial Services outperforming others.

HDFC, Bajaj Finance, Coal India and Reliance stocks are among the top gainers.

“The domestic equity markets witnessed unprecedented and remarkable surge, across all sectors and segments, after the exit polls indicated a higher probability for the current dispensation to come back to power with a clear majority,” Joseph Thomas, Head Research- Emkay Wealth Management, told news agency PTI on Monday.

"What would help the markets sustain the momentum is factors that are fundamentally important, like decisive policy initiatives from the new government, faster land and labour reforms, and also the unfinished task of quick consolidation and re-organisation of the banking system," he added.

Meanwhile, market regulator SEBI and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.

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