By Malvika Gurung
Nifty50 closed the first day of pre-Budget week 2.66% lower, while the 30-scrip Sensex declined 2.62%, ahead of two-day Fed policy meet starting tomorrow, global inflationary pressure, increased geopolitical tension, and FPIs withdrawing money due to the Fed’s tapering.
Sensex logged its highest daily fall since November. India VIX rose 24%.
According to NSDL data, foreign investors have drawn out Rs 8,800 crore from Indian equities by far in January 2022. Investors on Dalal Street lost Rs 9.15 lakh crore on Monday and Rs 20 lakh crore in the past 5 sessions.
The broader markets lagged compared to the benchmark indices, as S&P BSE MidCap sank 3.8% and S&P BSE SmallCap dived 4.4%. Analysts believe that in the near term, no positive triggers appear as US equities trend lower. As a result, many large-cap companies have dropped 20-30% so far in 2022, compared to 2021.
Expert Manish Sonthalia believes that the mayhem on the Street is going to get nastier.
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