The rally in the stock market for the last few years got a tremendous break today. There was a huge fall in the market today. Sensex fell 1100 points and closed below 60 thousand and closed at 59,984, while Nifty has fallen two percent. It closed at 17,857 below 18 thousand. The biggest fall was seen in banking stocks.
Wave of concern due to overvaluation in the market
SBI, HDFC, Axis Bank and Kotak Bank lost 3 to 4 per cent, while ITC fell 5 per cent. So far this year, the Sensex and Nifty have seen a gain of 25 percent. There has been heavy liquidity in the market and a large number of investors became participants in this rally. After this, this fall in the market has raised concerns. Analysts believe that there has been concern about overvaluation in the market. Meanwhile, Morgan Stanley has stampeded this concern by downgrading the rating of Indian stocks from overweight to equal-weight. It has said that there may be problems in the coming time in the market. But before that the market will consolidate.
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FII selling pressure created
In the correction that has come in the market, continuous selling by FIIs is being considered as a big reason. In the last five sessions, FIIs sold shares of Indian companies worth Rs 10,000 crore. Experts believe that there is increasing concern in terms of valuation in some parts of the market. At the moment, the share prices seem to be very high. In such a situation, the market participants feel that the market momentum is not very sustainable. So the selling phase has started. There is selling pressure in the entire market. Midcap and small cap indices have fallen more than 1.5 per cent.
Experts have called this decline a reasonable correction of the market. Nifty has reached below 20- Daily Moving Average. This has opened another path of decline. Further support zone is visible in Nifty between 17450-17,250.
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