InvestorQ : Why did the Sensex and Nifty correct so sharply after touch 50,000 on Sensex on 21 January?
Katherine Gonsalves made post

Why did the Sensex and Nifty correct so sharply after touch 50,000 on Sensex on 21 January?

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diksha shah answered.
6 months ago
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There was a sense of nostalgia when the Sensex broke new highs on 21 Jan 2021. That is because it happened exactly 13 years after that fateful day when the sub-prime implosion in India started with a lower circuit on 21 Jan 2008. Back in 2008, this particular day had triggered a sharp 52% fall in the market wiping out the bull market completely.

Things were quite different in 2021 although the indices did correct from those crucial levels. Most traders rushed to book profits which is natural when a major such psychological level is breached. As a result of this rush to book profits, from the peak the Sensex tumbled 785 points and finally closed at 49,625.

On Thursday, stocks like ONGC, Bharti, SBI and IndusInd lagged in the index. Even heavyweights like RIL and HDFC Bank saw selling pressure all around. All the sectoral indices ended in the red with the worst performer being the PSU Bank index correcting 3%. Global markets continued to rack up gains on Thursday after Biden assured central bank support and that may be good news for all EMs.

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