After steadily moving up without volatility over the past year, a combination of global developments and local policy elements brought volatility back to centre-stage, analysts said.
The sharp fall in crude prices over the past few days could prove to be a boon for the Indian market as the domestic economy would benefit from the drop in fuel prices.
The panic selling in global equities resumed after a brief reprieve last week – the S&P 500 index shed another 3.75 per cent overnight (February 8), bringing its total losses to 8.5 per cent since the correction started.
The markets saw extreme volatility and lost on four of the five trading sessions on the back of global cues and the after-effects of LTCG. The Dow Jones and bond yields shook global markets and literally rattled them.
The BSE Sensex tanked 440 points to end at over three-month low of 31,159.81 due to across the board selling by investors ahead of the expiry of September derivatives and weakness in the rupee amid mixed global cues.
Benchmark Sensex today slipped from life highs to end sharply lower at 31,710.99 by falling 364 points following a steep plunge in ITC Ltd stocks after the GST Council yesterday hiked tax on cigarettes.
Besides, the broader Nifty also cracked below the 9,900- mark.
The Sensex and the Nifty today made the most of the momentum and registered new all-time peaks at 32,074 and 9,916, respectively, building on optimism about corporate earnings.
The benchmark Nifty settled above 9,650-level for the first time followed across-the-board buying triggered by positive global cues.
The 50-share index rose by 37.40 points to 9,653.50 following buying mainly in realty, pharma, FMCG, media, auto, infra and IT stocks.