Why Sensex and Nifty is falling today?

Benchmark market indices Sensex and Nifty dropped sharply on Friday as investors panicked over the detection of a new and possibly vaccine-resistant coronavirus variant in South Africa.

Why did Sensex crash today?

A 1,688-point crash in Sensex wipes off Rs 7.36 lakh cr from market. Nervousness on the new coronavirus variant and expectations of the US increasing the pace of tapering has led to recent market weakness, said analysts. India VIX, a measure that shows fear in the market, spiked 25 per cent to nearly 21-level.

Why market is going down?

The markets are currently weighed down by various factors. Besides, rising inflation in the US and expectations of US Federal Reserve going in for faster than expected tapering of its stimulus programme and earlier than expected hike in interest rates is another factors that is impact the markets in emerging economies.

Is now good time to invest?

Stocks have mostly been on a tear since last year’s COVID-19 crash. Though there have been a few bumps, the S&P 500 index is up about 110\% since bottoming out on March 23, 2020. But even though another correction is inevitable, now is as good a time as any to invest in the stock market.

What is happening to NIFTY Next 50?

Nifty Next 50 was down 0.5\%, Mid and Small cap indices held up even better falling just 0.4\%. Even though Corona is raging through the country, the breath of the market remains positive. The trend continues to be upwards, as Nifty hasn’t yet broken any major level – which could suggest a potential turnaround towards the downside.

Is it time to be cautious about the Nifty?

Nifty did not fall as much as the broader market. The Nifty small cap index crashed by 2.2\% and the Nifty Mid cap index fell by 2.5\%. It’s time to be cautious in the short term. Any short term trading positions can be closed.

Should you be worried about the current trend in NIFTY?

The trend continues to be upwards, as Nifty hasn’t yet broken any major level – which could suggest a potential turnaround towards the downside. It appears like a normal correction. If there is a reason to worry, we will be the first to caution on this page. Until then, hold on to your long term positions.

Is the Nifty finally showing signs of a correction?

After a sharp rally from 13300 in late-December to 14600 in mid-January, the Nifty finally showed a small dip of a little more than 1\%. Looking at the way the correction has come – it continues to look like this will be a minor down-move after which the larger trend (upwards) will continue.