Surprise in stock market – After hitting 50,000 in Sensex yesterday, today the market goes red

Investors are confused and are questioning the validity of the market bull run

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%. 

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