Sensex, Nifty go into tailspin after hitting lifetime highs
Mumbai, December 20
Benchmark equity indices Sensex and Nifty went into a tailspin after hitting their fresh all-time high levels on Wednesday, closing down by over 1% as investors cashed in on the recent rally. Erasing all its early gains, the Sensex crashed 930.88 points or 1.30% to settle at 70,506.31.
The index opened higher and later gained 475.88 points to hit its all-time high of 71,913.07. However, across-the-board selling dragged the barometer down from record highs and it dropped to a low of 70,302.60.
Across-the-board selling to blame
- The index opened higher and later gained 475.88 points to hit its all-time high of 71,913.07
- However, across-the-board selling dragged the barometer down from record highs and it dropped to a low of 70,302.60
- The Nifty fell by 302.95 points or 1.41% to 21,150.15. During the day, it climbed 139.9 points to reach its record high of 21,593
The Nifty fell by 302.95 points or 1.41% to 21,150.15. During the day, it climbed 139.9 points to reach its record high of 21,593.
“The domestic market saw a sharp and abrupt sell-off in the second half, despite the positive trend in global peers. This is attributable to profit-booking from the recent sharp rally stretching valuations of mid and small-cap stocks. The recent uptick in crude prices prompted investors to book profits,” said Vinod Nair, Head of Research at Geojit Financial Services.
All the 30 Sensex shares, except for HDFC Bank, closed in the red. Tata Steel fell the most by 4.21%. NTPC, Tata Motors, HCL Technologies, Mahindra & Mahindra, State Bank of India, Power Grid, Tech Mahindra, Larsen & Toubro and JSW Steel also declined. HDFC Bank was the only gainer from the pack.
