Sensex down more than 500 points

Equity benchmarks sank on Tuesday with promoting rising at larger ranges.

BSE Sensex was down 559 points at 71,712 as heavyweight shares got here underneath promoting strain.

Ultratech Cement was down more than 3 per cent, M&M, L&T, Wipro have been down by more than 2 per cent.

V.Okay. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated an necessary development to observe is the spike within the volatility index VIX to 14.5 which signifies that prime volatility is not far away. Monday’s dump within the final half-hour is a warning that at larger ranges there may be bouts of huge promoting.

The 1000 level rally within the Nifty within the final one month has imparted momentum to the market.

Retail traders inspired by the wonderful returns of 2023 have turned exuberant and are chasing shares, unmindful of the excessive valuations, notably within the mid and small-cap segments. Investors shouldn’t fall into the entice of ‘recency bias’ and chase low grade shares within the broader market, he stated.

Declining greenback and US bond yields present a beneficial international context for equities. FII inflows in 2024 are prone to be enormous and have the potential to carry prime quality large-caps, notably in segments like banking the place valuations are honest, he added.

(With inputs from IANS)