In this article, FinTuts will share its views or insights about the bloodbath on dalal street with Sensex and Nifty plunged on 2020-12-21, so that you can take a self-decision on your investment or wealth creation journey and can be financially literate and atmanirbhar.
Due to the new wave of Covid-19 in Europe and weak global cues, all the sectoral indices have been ended in the red in India. Most of the Nifty and Sensex stocks have formed big red candlesticks on a daily chart today. With bloodbath on dalal street, it has erased the gains of the last 11 days and heavily suffered a worst single-day loss in more than seven months.
Sensex ended the day at 45,554 levels, down 3% or 1,407 points and on the other side, Nifty50 ended the day at 13,328 levels, down 3.14% or 432 points. The volatility index(India VIX) spiked 24.52% to 23.19.
Key factors behind a bloodbath on Dalal Street
The key factors behind a deep correction in today’s market crash: fear of a new wave of coronavirus, weak global cues & profit-booking.
It is quite well-known that the market was highly vulnerable due to quick gains made in the recent rallies leading to a low margin of safety. Despite this, please do not expect a big correction rather a consolidation of not more than 8-12% in the main indices in short term, maybe till the end of December 2020.
The Indian equities have started tumbling upon the good news of the latest stimulus package announcement and the bad news of a new strain of the Covid-19 virus in the UK.
The Bottom Line | Verdict
According to the market analysts, the rally in the Indian markets was driven by liquidity and a deep correction has been expected for any negative news.
It is advised to the investors to make a strategy in this type of falling market to buy at each dip without panic.
We hope that this article might have surely helped you to understand in general about the bloodbath on dalal street with Sensex and Nifty plunged on 2020-12-21 among weak global cues and the spread of coronavirus in the UK and Europe.
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Sumit Kalaria is the person behind FinTuts.in. He is actively engaged in finance blogging, not associated with any financial product or service provider. The main focus of his blog is to make investment simple by helping investors to make informed financial decisions.