Investors lost over Rs 2.2 lakh crore after benchmark indices slipped from record highs today. Market capitalisation on BSE fell to Rs 172.6 lakh crore today against market cap of Rs 174.82 lakh crore in the previous session. Sensex, which hit a record high of 44,825, ended 695 points lower at 43,828 after investors booked profit. Nifty too slumped 196 points to 12858, falling from record high of 13,145 in the same session.
The volatility gauge, India VIX, rose 10% to 23.15 in today's session.
Sensex, which closed above 44,000 thrice in the last five sessions, saw heavy selling pressure in the last one and a half hours of trade.
The index fell 1,068 points from day's high to 43,757 during last hour of trade and managed to close a tad higher compared to the intra day low. The equity market rally came to a halt after three sessions ahead of Monthly derivatives expiry on November 26. In the last three sessions, Sensex gained 924 points.
Going ahead, the uptrend in the market may not last for long, said analysts. "The Nifty, with a gap up opening, crossed upper end of a dynamic rising channel on the hourly chart; however couldn't sustain in the higher territory. The index faced sharp selling pressure there. As a result, Nifty formed a bearish outside bar along with an Engulfing Bear candle on the daily chart.
The daily momentum indicator has triggered a bearish crossover. These are signs of fatigue and suggest that the uptrend could be near its maturity from short term perspective. On the way down, Nifty has broken its crucial hourly moving averages & the fall can continue till 12,600 in the short term," said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
On Sensex, Kotak Mahindra Bank was the top loser falling around 3 per cent, followed by Axis Bank, Sun Pharma, HDFC Bank, Bajaj Finance and Asian Paints. On the other hand, ONGC, PowerGrid and IndusInd Bank were the gainers.
On Nifty, only seven stocks managed to end in the green against 43 closing lower in today's session. Top losers on Nifty were Eicher Motors, Axis Bank, Kotak Bank and Sun Pharma falling up to 3.72%.
On the other hand, top gainers were ONGC, GAIL, Adani Ports and SBI Life rising up to 5.91%.
Shrikant Chouhan, Executive Vice President (Equity Technical Research) at Kotak Securities said, "The Nifty 50 index formed a big bearish candle on a daily chart and lost its entire gains of last two days ahead of tomorrow's F&O expiry. Globally too, we witnessed a similar type of trend. Monthly expiry has also mounted pressure on the market.
Sensex approaches 45K, Nifty scales 13,100: Five factors behind the rally
As per the broader formation of the market, until the market is not breaking 12500 levels, the short term trend of the market would remain corrective in nature. The strategy should be to buy on dips. The 12850 and 12550 levels act as major a support for the index, while on the higher side, 12980 and 13050 would be hurdles for the index."
Record buying by foreign institutional investors (FIIs) has pushed benchmark indices to record highs. FIIs have infused a record Rs 55,552 crore into Indian equity market this month. This is the highest ever monthly inflows by FIIs leading to positive sentiment in the equity market leading to Sensex and Nifty hitting record highs in almost every session in November.