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HomeMarket NewsStock Market Crash: Key triggers that have caused the ₹7.5 lakh crore meltdown
Another major issue plaguing the markets is the constant gush of IPOs that are hitting the street. As many as five IPOs open for subscription today, taking the total issuances past 100 and the fund raising to near ₹1.8 lakh crore, higher than the sum raised last year.
Indian equities have sold off at the start of this new trading week, with no specific negative news trigger leading the fall.
Markets had rallied on Friday to close the week on a high after the RBI policy delivered a rate cut, something that the market had hoped for. However, the market has given up all of those gains and a lot more.
The Nifty 50 index has slipped below its 20-Day Moving Average (DMA) with 46 stocks on the index trading with losses.
The broader market sell-off is steeper, with 96 out of 100 stocks on the midcap index and 97 out of 100 stocks on the smallcap index trading with losses.
The Midcap index is down over 1,200 points and has declined in four out of the last five trading sessions. The index is down 1,800 points from the November 17 high of 61,180.
The next major cue comes from the global markets this week, as the US Federal Reserve will be making its policy announcement in the early hours of Thursday Indian time.
Another major issue plaguing the markets is the constant gush of IPOs that are hitting the street. As many as five IPOs open for subscription today, taking the total issuances past 100 and the fund raising to near ₹1.8 lakh crore, higher than the sum raised last year.
Out of the five IPOs, the mega ICICI Prudential AMC IPO will also open for subscription this Friday. The ₹10,622 crore IPO will be the fourth-largest issue of the year.
In an interaction with CNBC-TV18, Sunil Singhania of Abakkus said that the supply of paper continues to be a headwind for the markets. He mentioned that he does not want to buy stocks where fundamentals are not strong or which are priced to perfection. He sees opportunities in engineering, pharma and select renewable stocks.
Rohit Srivastava of Indiacharts.com also told CNBC-TV18 that he does not see the Nifty slipping below the 25,800 mark and eventually make a move higher after this recent phase of range-bound consolidation is over.
