You are here: Home » Markets » News
Business Standard

Bears can drag Sensex towards 57,000

The long-due correction seems to be playing out on Dalal Street as key indices have fallen over six per cent from record-high levels. Where are the markets headed as per tech charts? Let's find out

Market | Sensex falls | Dalal Street

Nikita Vashisht & Puneet Wadhwa  |  New Delhi 

Benchmark indices registered their biggest one-day fall in nearly seven months as bears reigned on for the fourth straight day on Monday.

The BSE Sensex tumbled 1,600 points in the intra-day trade, and is now down over 3,700 points from its record high level of over 62,000.

The Nifty50, meanwhile, tanked 348 points yesterday, and has now erased around 1,200 points from record high level.

Overall, the indices ended at 58,466 and 17,416 levels, respectively, in a broad-based sell-off.

have been in a risk-off mood since last week, which only escalated yesterday with fresh lockdowns being announced in countries like Austria and clamp down on activities across other European countries.

The dollar index rising above 96, and the subsequent FII outflow, emerged as other concerns for India.

Domestically, rich valuations and negative flow around Reliance Industries added to the woes.

Going-forward, tech charts suggest more pain ahead for equity investors in the near-term as key support and resistance zones shift downwards.

Fundamentally, too, analysts see more downside to the on-going correction. However, they see this meltdown as a ‘healthy correction’ within a broad bull

Jigar Shah, who is chief executive officer at Kimeng Securities India, also feels road ahead for Indian equities won’t be too bumpy over the medium-term as FII inflow may resume in 2022.

India, he says, will be able to attract foreign flows next year as China’s attraction has reduced over time.

“From a micro perspective, India will remain attractive as there are individual stories – whether in e-commerce, renewables space, consumer and healthcare – that will play out and continue to attract foreign capital,” said Jigar Shah, chief executive officer, Kimeng Securities India

Shah points out that India has borne the brunt of FII selling in the equity segment in the last few weeks as rising inflation and inflation-adjusted currency fluctuations are a concern.

But, from a macro-perspective, India will remain attractive as there are individual stories – whether in e-commerce, renewables space, consumer and healthcare – that will play out and continue to attract foreign capital next year.

As regards Tuesday’s session, apart from the secondary correction, investors will eye the debut of Latent View Analytics.

Shares of the company will list on the bourses today and were trading with a strong premium in the grey yesterday, despite weakness in the secondary market.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, November 23 2021. 08:00 IST