Sensex: Market Watch: What led to the sharp sell-off on D-Street?

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Bhaskar Dutta and here are the top headlines at this hour.

> Average air bubble fares at pre-Covid level
> Jio conducts drone trial on its 5G network
> India’s airlines incurred loss of Rs 19,564 cr in FY21
> India’s forex reserves 4th largest
> Cos raised Rs 52,759 crore from IPOs, says FM

Let us take a quick glance at what happened on Dalal Street today.

Domestic equity markets kicked off the new week on a negative note as investors feared that rising cases of Omicron variants in India could spark another round of local curbs and restrictions in the country. Amid this, investors lost about Rs 4.3 lakh crore of their notional wealth, thanks to the sell-off in IT, pharma and FMCG players. All sectors, meanwhile, ended lower.

BSE barometer Sensex after gyrating in the range of 1,100 points, tanked almost 950 points to settle below 56,750. The index has shed more than 1,700 points in just two sessions. Its broader peer Nifty shed about 285 points to settle a dozen points above the 16,900 mark. The index had breached 16,900 levels during the session. Broader markets’ fall was in the line with the headline peers. Both BSE midcap and Smallcap indices shed over a per cent each. Fear gauge India VIX jumped over 9 per cent to cross 20 levels.

None of the shares on BSE Sensex were able to end the day in the green. IndusInd Bank topped the losers, with a 4 per cent fall. It was followed by Bajaj Finserv, Bharti Airtel, HCL Tech, TCS and Tech Mahindra that tanked 3 per cent each.

Infosys, Asian Paints, Maruti Suzuki, NTPC, Dr Reddy’s Labs, Power Grid, Sun Pharma, M&M, RIL, ITC, Ultratech Cement, Nestle, SBI, Bajaj Finance and HUL were stocks that shed 2 per cent each. About 530 stocks hit upper circuit limits for the day and more than 245 stocks hit the lower circuit. As many as 80 stocks tested their 52-week highs during the session.

We have Narendra Solanki from Anand Rathi Shares & Stock Brokers to share his views on the day’s action and the road ahead:
Welcome to the show sir:
1. What were the reasons behind the sharp selloff in the market?
2. Four IPOs are hitting the primary markets this week. Should investors be more cautious amid the volatility?

We also caught up with Vijay Dhanotiya of CapitalVia Global Research to decode the technical charts for you.
1. Nifty50 slipped below 16,900 mark during the day. Where is it headed now?
2. India VIX Spiked about 9 per cent today, crossing 20 levels. What is it indicating?

Asian markets settled mostly lower for the day. Major European markets were trading with gains in the first few hours of trade. US stock futures were hinting towards a mixed start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

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