Indian equities tumbled at the start of the new trading week, despite the absence of any major negative news. Markets had rallied on Friday after the RBI delivered an expected rate cut, but those gains have now been completely erased. The Nifty 50 has fallen below its 20-day moving average, with 46 of its constituents trading in the red.
The broader market witnessed an even sharper correction, with 96 of 100 midcap and 97 of 100 small-cap stocks declining. The Midcap index has dropped over 1,200 points and has fallen in four of the past five sessions, now down 1,800 points from its November 17 peak. This broad sell-off has wiped out nearly ₹7.5 lakh crore in investor wealth.
Attention now shifts to global cues, especially the US Federal Reserve’s policy announcement early Thursday. Another pressure point for the market is the heavy supply of IPOs. Five new issues opened today, pushing total issuances beyond 100 and fundraising close to ₹1.8 lakh crore — surpassing last year’s tally.
Experts told that IPO supply remains a headwind, though opportunities exist in engineering, pharma, and renewables. Analysts also expect the Nifty to hold above 25,800 before resuming an upward trend after consolidation.
