Nifty crash worst single-day fall since Covid days. What should investors do?
Nifty today suffered its biggest fall since March 2020 when the whole world was stressed about Covid-19. The headline equity index erased all gains made in the calendar year 2024 and fell below the 21,300-mark after vote counting for elections showed BJP may not win as many seats as the market had priced in.
While Sensex fell up to 6,234 points during the day, Nifty bulls saw an erosion of nearly 2,000 points at day's low. On BSE, over 3,400 stocks fell with 745 hitting the lower circuit limit and 285 stocks touching 52-week low levels.
The market capitalisation of all listed companies on BSE declined by Rs 45.56 lakh crore to Rs 380.35 lakh crore during the day.
Exit poll predictions had unleashed the bulls on Dalal Street on Monday with predictions that the ruling NDA may win over 350 seats in the elections. However, counting trends show that the NDA is leading in around 300 seats while the opposition INDIA has bagged more than 200 seats.
«The market, which had begun to price in a landslide victory for the NDA, is witnessing a significant correction due to margin calls, as retail investors were carrying heavily leveraged positions. Support seems to be very fragile. Immediate support is visible at the psychological level of 22,000, below which the index might fall further towards 21,400-21,500,» said Rupak De, Senior Technical Analyst, LKP Securities.
Buy the dip mantra may work as recovery looks possible once the trend moves in favor of the BJP winning the election comfortably. However, a bigger fall could be
