Indian benchmark indices have shed over 4% from their record highs in just two sessions. Sensex, which hit an all-time high of 82,129 on August 1, has lost 3370 points or 4.10% since Thursday. Similarly, Nifty has crashed 1,023 pts or 4.07% from the record high of 25,078 hit on August 1. Investors have lost Rs 19.80 lakh crore in two sessions with the market cap falling from Rs 461.62 lakh crore on August 1 to Rs 441.82 lakh crore in the current session.
In the current session, Sensex fell 2222.55 pts to 78,759 and Nifty slipped 662 pts to 24,055. Top Sensex losers were Tata Motors, Adani Ports, Tata Steel, SBI, Power Grid, Maruti, JSW Steel, Infosys, L&T and Tech Mahindra, falling up to 7.32%. HUL and Nestle India were only Sensex gainers, rising up to 0.83%. Market cap of BSE-listed firms fell to Rs 441.82 lakh crore, with investors losing Rs 15.34 lakh crore on Monday.
Market breadth was negative as out of 4,189 stocks traded, 670 stocks ended in the green on BSE. Around 3411 stocks closed in the red while 111 stocks remained unchanged.
Around 293 stocks hit their upper circuits as the stock market tanked on Monday. On the other hand, 565 shares hit their lower circuit limits, signaling negative sentiment on BSE.
All 19 BSE sectoral indices ended in the red. BSE auto, banking, capital goods and IT indices ended 2085 pts, 1545 pts, 3034 pts and 1429 pts lower, respectively. BSE metal and oil and gas indices fell 1510 points and 1253 points.
Foreign institutional investors sold Rs 3,310 crore worth of equities on a net basis on Friday, while domestic investors bought Rs 2,965.94 crore of shares, as per provisional NSE data.
Nifty ended 293 pts lower at 24,717 and Sensex lost 886 pts to 80,982 in Friday's trading session.
Here’s a look at what analysts said on the outlook of Sensex and Nifty in the near future.
Shrikant Chouhan, Head Equity Research, Kotak Securities said, "We are of the view that the current market texture is weak and volatile but due to temporary oversold conditions, we could expect one intraday pullback rally. For the day traders now, 24000/78500 would be the immediate reference point. Above the same, we could expect intraday pullback up to 24150-24250/79000-79300. On the flip side, below 24000/78500 the selling pressure is likely accelerate. Below the same, it could retest the level of 23900/78300. Further downside may also continue which could drag the index till 23800/78000."
Commenting on the outlook of Nifty, Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty slipped back into the rising channel on the daily time frame due to heavy selling during the day. On the lower end, Nifty found initial support at the 50EMA before closing slightly higher. The RSI is in a bearish crossover and falling. Sentiment is likely to remain weak in the short term and may weaken further below 23,900. Support is placed at 23,900/23,700. On the higher end, resistance is seen at 24,200/24,500."
Mandar Bhojane, Research Analyst at Choice Broking said, "After a volatile session, Nifty finally settled above the 24,000 level at 24,055. On the daily chart, the price is taking support at the 50 EMA, which acts as a support level. If the price closes below the 24,000 level, it may further correct to the 23,800 and 23,600 levels. On the flip side, 24,300 and 24,600 will act as important resistance levels."