Dalal St Selloff: Investors lost Rs 2 lakh crore
Published On: Wednesday, November 25, 2020 | By: Team KnowMyStock
Benchmark indices took a beating after hitting record highs earlier today, led by across the board selling. Indices fell ahead of the monthly settlement of futures and options contracts on Thursday. By the close, Indian investors had lost nearly Rs 2.26 lakh crore in wealth, with shares of the three most valuable companies seeing m-cap erosion of Rs 39,581 crore. IT and banking stocks were hit badly. 211 stocks hit their lower circuit limits. Select midcaps fell up to 7 percent.
Markets drifted lower and lost over one and a half per cent, taking a breather after the recent surge. Participants were in the profit-taking mood from the beginning, citing overbought markets and a cautious approach ahead of derivatives expiry. Consequently, the Nifty index ended near day’s low at 12,858 levels, down by 1.5 per cent. In line with the benchmark, the broader indices, too, witnessed a decline wherein midcap lost 1.8 per cent and smallcap ended with a cut of 1.1 per cent. Among the sectoral indices, banks, auto, and healthcare were the top losers.
It’s normal to see an intermediate dip in a trend and we may see further profit-taking ahead. Besides, volatility is also likely to remain high due to scheduled derivatives expiry. Nifty has the next crucial support at 12,700. Considering the scenario, we suggest limiting naked leveraged trades and preferring hedged positions.
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