Market mimics global sell-off ahead of RBI monetary policy meet

Indian markets saw huge correction in-line with the global market sell-off. During the morning session on Tuesday, market witnessed third day of correction ahead of RBI monetary policy meet on Wednesday.

BSE Sensex was at 33,664.89, down by 1092.27 points or 3.14 per cent, while Nifty50 was at 10,336.95, down by 329.60 or 3.09 per cent. This sell-off in the market can also be attributed to introduction of LTCG and absence of any major announcement in the Union Budget that could sustain the bull rally. 

Following Dow Jones 1,600 points fall on Monday, while Asia markets extended their loss with Hang Seng Index was at 30,651.31, down by 1,593.91 points or 4.94 per cent, Nikkei was at 21,487.87, down by 1,194.21 points or 5.26 per cent, KOSPI Index was at 2,412.42, down by 79.33 points or 3.18 per cent, Shanghai Composite Index was at 3,392.19, down by 95.30 or 2.73 per cent.

As of now, it seems that despite good earnings season, the market seems in no mood to support stocks which are actually trading at very high valuations. Experts believe that market is in a correction phase and will resume its upward rally post a reset of stock valuations in view of the current market conditions.