Introduction
Indian equities saw a steep correction today as the Sensex plunged more than 800 points and the Nifty fell to 24,683, closing the trading day deep in red. All sector indices closed in the red, with the automotive sector being the worst performer. This across-the-board selling is a sign of investor apprehension in the face of global volatility and domestic issues.
Table of Contents
Sensex Falls More Than 800 Points – What Was the Cause of the Decline?
Sensex’s fall of more than 800 points was not a solo move – it was prompted by a confluence of global and domestic reasons:
- Dull global leads due to renewed inflation and geopolitical fears.
- Ongoing bout of FIl selling.
- Increase in COVID-related warnings in certain regions of Asia.
- Profit taking at higher levels following recent market peaks
Nifty Dips to 24,683 – Breaks Key Support
The Nifty’s slide to 24,683 reflects a failure of a crucial technical support level. Traders and analysts have been keeping a close watch on the 24,700 level. Crossing this level could open the floodgates for further decline unless there is an improvement in global sentiments.
Nifty Dips to 24,683 – Breaks Key Support
The Nifty’s slide to 24,683 reflects a failure of a crucial technical support level. Traders and analysts have been keeping a close watch on the 24,700 level. Crossing this level could open the floodgates for further decline unless there is an improvement in global sentiments.
Auto Sector the Worst Laggard
Sector-wise indices, the Nifty Auto index was hit the hardest, declining over 2%. Top auto stocks including:
- Maruti Suzuki
- Mahindra & Mahindra
- Bajaj Auto
- Eicher Motors
All plummeted sharply as investors turned risk-averse.
Broader Market Performance
The agony wasn’t restricted to large caps:
- BSE Midcap index fell more than 1.6%
- BSE Smallcap index fell almost 1%
- All 13 Nifty sectoral indices closed in the red
The Sensex fall of more than 800 points and the Nifty’s decline to 24,683 came with broader weakness across the board.
Currency Movement Adds to Pressure
The Indian Rupee fell by almost 24 paise against the US Dollar, fueled by equity outflows and a higher dollar index. This currency fall has put even more pressure on import-intensive industries such as auto and energy.
Analysts' Forecast for Sensex and Nifty
Market pundits feel the steep fall is a part of a near-term correction and not necessarily the beginning of an extended bear phase. However, they warn:
- Keep a watch on global leads, particularly US Fed inputs
- Observe Fll activity and institutional investment flows
- Remain defensive in overbought areas
The more than 800 point Sensex fall and Nifty drop to 24,683 can be buying opportunities provided fundamentals are intact.
Investors' Action Now
- Long-term investors: Remain invested, don’t panic sell.
- Short-term traders: Implement strict stop-losses; stay away from aggressive bets.
- New investors: Wait for stabilization before entering.
Conclusion
The Sensex falling more than 800 points and the Nifty falling to 24,683 mark one of the steepest corrections in recent times. Led by the auto sector as the biggest laggard, today’s closing bell is a sign of widespread fear. Investors are recommended to remain watchful, adhere to disciplined approaches, and be watchful of quality stocks.
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