The performance of the Indian stock market has come as a shock to most investors and traders as the previous trading called for a celebration on the two benchmark indices of India Sensex and Nifty 50 respectively hit a lifetime-high of a psychologically significant round number. The former index hit 50,000 and the latter index hit 15,000.
Today the Nifty 50 is down by 1.2% from yesterday’s close and except for the Next 50 index which is down by 0.75% all the other are down by more than 1%. Not surprisingly, the fear index of stock markets, INDIA VIX was up by 2.24% at the time of writing.
Today’s downfall has been spearheaded by the metals and the financial sector. It is noteworthy that a few days back Shaktikanta Das, the Governor of India’s central bank, the Reserve Bank of India (RBI) had warned about the fundamental analysis disconnect between the non-performing assets (NPAs) and the stock prices of these companies.
Auto sector is however the odd one out and is green by almost 2%, followed by a wide distance by Information Technology (IT) sector which is holding green with 0.24%.