SENSEX collapsed despite record high opening
As per latest trending update, Indian equity benchmarks opened at fresh record highs on Wednesday but sank into the red by the afternoon. At 2pm the Sensex was down 313.80 points or 0.44 percent at 71,123.39, and the Nifty was down 103.60 points or 0.48 percent at 21,349.50.
![SENSEX collapsed despite record high opening](https://www.psuconnect.in/sdsdsd/SENSEX_collapsed.jpg)
An unusual U-turn, Right after hitting fresh record peak near the 72,000 level, the Sensex on Wednesday fell over 1,000 points from the day's high, while Nifty also drop down nearly 300 points from the peak as traders chose to book profits. The fall was sharper in the Nifty Midcap and Nifty Smallcap indices-each of them tumbled around 2 percent. FMCG was the only sectoral index trading in the green, while banks and IT indices were trading around 0.5 percent lower.
The fall was sharper in auto, media, metal, PSU banks, and realty stocks. According to percentage terms, today's decline in Nifty was the biggest single-day loss since October 26. In the last one month alone, the index is up over 1,500 points or about 7.6 percent.
Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoYWithin the Nifty 500 pack, Indiabulls Housing Finance, Indus Towers, SJVN, Alok Industries, IRCON, Rajesh Exports, and Central Bank were among the top losers with downticks of 6-7 percent each. Adani Ports and Adani Enterprises were among the top Nifty losers. ONGC, Tata Consumer, and Britannia managed to stay put with gains of 2-3 percent each.
The sudden change in market scenario took participants by surprise as all global and domestic cues are showing positive signs. Japan's Nikkei 225 was trading higher by 1.5 percent, while London's FTSE 100 was up 1 percent. The US 10-year and 2- year bond yields fell over 100 bps each, while Brent crude oil prices were still trading below the $80 level.
Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail depositsIt is expected that both valuation parameters and technical indicators have been hinting at a consolidation ahead after a one-way rally seen in the last few days. Focusing on a more fundamental level, the market cap to GDP ratio, also known as the Buffet Indicator, has reached levels, that signal potential overvaluation as the market may have priced itself well ahead of the curve.
The consensus view on Dalal Street has concluded that largecap stocks offer better reward-risk balance, given more reasonable valuations versus lofty valuations of most mid- and small-cap stocks.
Read Also : India assumes the Chair of Asian Disaster Preparedness CentreNews Must Read
- Karnataka Bank Announced record Q1 Net Profit at Rs. 400.33 CR
- NTPC, BHEL shares soar higher amid JV announcement in Budget 2024
- BEL signs tripartite MoU for manufacture of indigenised ammunition
- Goa Shipyard Limited launched first indigenous P1135.6 Frigate
- Chandan Sinha appointed as Non-Executive Part Time Chairman of RBL Bank
- OIL and Dolphin Drilling signs contract for hiring of Blackford Dolphin
- Cmde D.K. Murali, IN (Retd.) Joins as CMD of BECIL
- Samir Chandra Saxena Appointed as Director (Market Operation) of GRID-INDIA
- MOIL CMD bags Title 'CEO of the Year'
- ONGC sign MoU with GSI to advance geothermal exploration in Ladakh