Amidst heavyweight index buying, Sensex and Nifty recovered from Tuesday’s selloff. The sentiment of the world market was ambiguous. The most selling pressure was observed in the real estate index sector. Before tomorrow’s F&O expiry, the India VIX increased by 3%, signalling increased volatility.
“The most significant lesson from yesterday’s severe market correction is not the 1.54% decline in the Nifty, but rather the 3.15% and 2.87% declines in the Nifty Midcap and Nifty Smallcap indices, respectively. There have been numerous recent examples of how the values in the larger market had grown out of control and unsustainable. The continuous selling by FIIs, who have liquidated stock worth Rs 27830 crores over the last five days, was the primary cause of the correction. The selling in the market was also influenced by some rumours and reports.
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