Five days of the selloff on D-Street pushed Sensex and Nifty50 below crucial support levels. The S&P BSE Sensex plunged more than 3000 points since January 20 while Nifty50 is down by about 1000 points in the same period.
The average market capitalisation of the BSE-listed companies fell by about Rs 10 lakh cr in just five sessions. The market capitalisation of the BSE-listed companies fell from Rs 197.70 lakh cr to Rs 188.13 lakh cr as of January 28, 2021.
The fall in markets can be largely attributed to the selloff by foreign investors who were net sellers to the tune of more than Rs 5100 cr in the last five trading sessions.
Weak global cues, as well as uncertainty around Budget 2021, also weighed on the sentiment of an overbought market. Experts advise investors to stay neutral ahead of the Budget 2021 on 1st February and watch out for crucial levels on either side.