InvestorQ : Why did the Sensex correct by 627 points at close on 31 March?
Juvina Maggie made post

Why did the Sensex correct by 627 points at close on 31 March?

Deepa Salunkhe answered.
1 year ago

The last trading session of FY21 closed on a negative note with the Sensex losing 627 points as there was hefty profit booking seen in the private banking and IT sector. This kind of outweighed the aggressive buying that was seen in sectors like PSU banking, FMCG, and realty sectors. While the BSE Sensex settled 627 points lower at the level of 49,509, the Nifty index ended 154 points in the negative at 16,691 levels.

The pressure was visible from the A/D ratio which indicated that 20 of the 30 constituents on the Sensex ended the day in the red implying an A/D ratio of 1:2. Among the big losers in the day were HDFC Bank, HDFC, Power Grid, ONGC, ICICI Bank, Infosys and Bajaj Finance. Stocks like Hero Motor, Asian Points, RIL and CIL saw losses up to 5% in trades on Wednesday. The few gainers included ITC, SBI, HUL, Tata Motors, UPL and Grasim.

The year FY21 has been a pleasant surprise but rather astonishing. Despite the economy slipping into recession and most of the economic activity coming to a standstill for between April and August, due to the COVID-19 pandemic, this marks the best performance by the Nifty and Sensex in more than 10 years. While Sensex rallied 68% the Nifty rallied 70.8%. The earlier single year rally was in 2010. Archegos may have repercussions on India.