Indian equity benchmarks, Nifty50 and Sensex, surrendered initial gains in spite of the global market power in a volatile session on 20 October 2021. Resultantly, cracks have been diverging in the intense rally in small and mid-cap shares for the past 18 months.
Moreover, smaller share indices have seen a dip of around 5% during the last two trading sessions. This raises concerns over the bullish momentum, which could now get reversed for a long time.
Want to know about this volatility?
Fall in Indices – Key Highlights
During the closing, Sensex was down by 0.74% or 456.09 points, reaching 61,259.96. Further, the Nifty dipped by 0.83% or 152.20 points, reaching 18,266.60.
Moreover, around 877 shares are on an advance, 115 shares remain unchanged, and as many as 2351 shares have declined. As for the sectoral indices, all of them finished in red.
Here are a few highlights on how the benchmark indices performed on Wednesday:
- Flat closing in Nifty Bank with a negative bias to dip for the second time in a row
- Fall in Nifty is over 150 points, which is the second day in a row decline
- The BSE mid-cap and small-cap dips 2% each
According to the bulls, the broader market decline did not last for a long time due to strong investment flow from individual investors. However, experts have warned against hostile purchases in these sectors even during dips because valuations are recognised as rich.
As per experts, they were having concerns about when the correction will start. However, there is no sign of correction as of now. Further, these two days of dip indicates what could happen if the fall broadens. This could lead to a possible panic because most new investors never got a chance to witness any correction.
From the record of 27,246.34 on 19 October 2021, the BSE mid-cap index has dipped by nearly 5%, reaching close to around 25,914.53. In addition, the small-cap index has also dipped by 5%. Earlier, it hit a record high of 30,416.82 on 19 October 2021. Small-cap index closed at 28,878.73 on 20th October 2021.
Who are the Top Gainers and Losers?
HUL, Titan Company, BPCL, Hindalco and Bajaj Finserv were among the major losers in the Nifty index. On the other hand, SBI, Bharti Airtel, IndusInd Bank, Axis Bank and Tata Motors were among the top gainers.
- The major gainer among the Sensex30 stocks was Bharti Airtel. This stock went up by 4% to reach Rs. 709.
- SBI stock moved to a fresh all-time high of Rs. 500 by rising by around 2.5%
- Titan fell by 3% to Rs. 2,483
- Hindustan Unilever dropped down by 2.5% to reach Rs. 2,483
- PowerGrid Corporation, Bajaj Finserv, NTPC and Larsen and Toubro dipped by 2% each.
Analysts believe that retail flow into the markets could be tested well, given this sell-off continues for a longer time. Furthermore, despite expensive valuations, these stocks have jumped up due to liquidity.
Frequently Asked Questions
- How much is the addition to the investor base since 1st April 2021?
There has been an addition of 15.2 million to the investor base since 1 April 2021.
- What was the number of investor account during September 2021?
Investor account rose to a record high of 70 million by the end of September 2021.
- What is the fall in the shares of IRCTC?
IRCTC saw the biggest decline within the mid-caps, with a fall of 17% on Wednesday, 20 October 2021.