Nifty, Sensex today trade volatile, mid and smallcaps crack up to 4%. What should be your strategy for short term?
Nifty appear to have lost steam as both traded volatile on Tuesday amid lingering concerns over sticky inflation, higher interest rates, and a slowdown in global economic growth. Sensex opened with a strong gain of 380 points at 67,506.88 against the previous close of 67,127.08 but failed to hold altitude and fell over 150 points in the trade so far.
Overall, the index saw a swing of nearly 600 points in today's trade so far. The Nifty50 hit its fresh record high of 20,110.35 in opening deals but developed cold feet thereafter.
The index touched its intraday low of 19,914.65 in today's trade so far. On the other hand, early morning today, the BSE Midcap and Smallcap indices hit their fresh record highs of 33,245.85 and 38,769.33 respectively but witnessed a strong selloff after that.
The BSE Midcap index fell to an intraday low of 32,082.81, down 2.97 per cent against the previous close of 33,064.96 while the Smallcap index plunged to its intraday low of 37,005.17, down 3.97 per cent against its previous close of 38,533.40 in Tuesday's trade so far. Read more: Stock market today: Midcaps crack 3%, smallcaps plunge 4% as stock market sentiment turns negative As of September 11 close, benchmarks the Sensex and the Nifty have each gained over 10 per cent this year while the BSE Midcap index has surged nearly 31 per cent and the BSE Smallcap index has jumped 33 per cent in the same period.
Given that many positive factors have already been factored into the market, and with the ongoing risks of inflation, elevated interest rates, a global economic slowdown, and the continual increase in the dollar index and US Treasury yields, the recent market rally was anticipated to be short-lived. Due to the sharp rise in the market,
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