Sensex loses over 1800 points in the 2nd biggest fall since February; 5 instances when markets corrected most

The Sensex witnessed second biggest fall since February as the 30-share index dropped over 1800 points in a sing-day fall amid fears surrounding the Omicron variant, coupled with selling by the Foreign Institutional Investors (FIIs) and weaker global cues.  

The Sensex had shed 1939.32 points as on February 26, 2021, making it the biggest fall so far this year, showed BSE data. The 30-share index on Monday corrected over 1800 points from its previous close of 57,011.74 to touch the day's low of 55,132.68.  

Previously, the Sensex tanked 1707.94points on April 12, 2021. Recently in November, the index also plummeted by 1687.94 points and 1170 points in one of the biggest falls this year. 

Refer to the table below for the biggest corrections since February 

Source: BSE

Meanwhile, Investors lost a whopping Rs 11.23 lakh crore, in the biggest fall since February 2021 as Sensex lost over 1800 points in an intraday trade. Nifty50 also witnessed one of the worst falls in months as the index declined by over 550 points to hit day's low of 16,410.20.  

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As the market witnessed one of the biggest falls in almost one year, Investors became poorer by Rs 11,23,010.78 crore in two days amid severe drubbing in view of multiple factors. The market capitalisation of BSE-listed companies tumbled Rs 11,23,010.78 crore to Rs 2,52,79,340.30 crore in two days, said a PTI report. Investors' wealth had on Friday shrunk by over Rs 4.65 lakh crore as markets suffered a heavy selloff following weak global trends and continued selling by foreign institutional investors.

"Indian equity markets have been witnessing sharp correction on the back of rising worries of omicron, hawkish global central banks, and most importantly relentless selling by FIIs.  We are seeing the first meaningful correction in the current bull run and this correction has completed more than 10% from highs," said Parth Nyati, Founder. Tradingo on today's market.    

We are in a structural bull run where every correction is a great buying opportunity, said Parth.    

"Technically, 16700-16400 is the first strong demand zone where we can expect a strong bounceback while 16200-16000 should be a worst-case scenario. On the upside, 17000 will be immediate resistance while 17250 will be a critical hurdle," he said.  

Top sectors to bet on in ongoing correction are capital goods, infrastructure, real estate, telecom, wealth management, banking, and technologies, said the analyst.    

Meanwhile, all broader market and sectoral indices traded in the red as the major indices corrected between at least 1 to 6 per cent.    

Except for Hindustan Unilever, Dr Reddy and Wipro, all stocks traded in the red on 30-share Sensex, while Powergrid and Cipla were other two stocks that gained along with the three on the Sensex on the broader Nifty.