Eminent investor Basant Maheshwari has been quite known for his random views on the stock market. In an X (formerly Twitter) post shared on Wednesday, the market expert wrote: "I don't know about the division... Everything is being cut…."
Maheshwari's post comes at a time when domestic benchmarks entered into the corrective zone as BSE Sensex and NSE Nifty cracked around 10 per cent from their respective record-high levels. It soon attracted a lot of responses from X users as a few referred to the market fall as 'brutal' while some commented that equity would get more 'attractive' for long-term quality investments.
Today, the indices extended their losing run for the fifth straight session. The 30-share Sensex pack cracked 984 points or 1.25 per cent to close at 77,691 and the broader Nifty index lost 324 points or 1.36 per cent to settle at 23,559. At today's closing levels, Sensex and Nifty have declined 9.64 per cent and 10.34 per cent, respectively, from their lifetime peaks.
Why Sensex & Nifty fall today?
A spike in inflation dampened hopes of an interest rate cut by the Reserve Bank next month, adding to concerns over dull earnings and sustained foreign outflows. Government data showed that retail inflation spiked to a 14-month high in October.
"With inflation once again rising sharply and breaching above the RBI's comfort level, receding hopes of any major rate cuts in the near future by the central bank put the markets into a tizzy. Also, relentless FII selling in local equities, along with rising US bond yields and dismal corporate earnings show has prompted overseas investors to park their funds in relatively cheaper markets like China," said Prashanth Tapse, Senior VP (Research), Mehta Equities.
The pain was much worse in the broader market (small- and mid-cap stocks). "Mid and small-cap stocks were the worst hit, while the financials and auto sectors also showed significant weakness. This trend is mirrored across all emerging markets, as markets are jittery about future US policy actions, including trade-related implications for the world economy, which is reflected in the strengthening US dollar and rising yields," said Vinod Nair, Head of Research, Geojit Financial Services.
Renewable energy stocks also continued to dwindle. "All these renewable energy stocks have taken a beating after the re-election of Donald Trump in the United States. There is a negative sentiment around all these renewable energy companies and stocks, especially solar panel firms," Aditya Agarwala, Co-founder and Head of Research & Investments at Invest4edu, told Business Today.
Trump has not been a supporter of the renewable energy sector and made claims to halt renewable energy projects on the "first day" of his potential presidency.