InvestorQ : Why did the Sensex correct so sharply from higher levels on 18 August?
Arti Chavan made post

Why did the Sensex correct so sharply from higher levels on 18 August?

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Rutuja Nigam answered.
4 months ago
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On Wednesday 18 August, the BSE benchmark Sensex hit a record high of 56,000 levels but subsequently the index corrected and closed with losses in the second half of trading. Towards the end of the day, the Sensex closed 163 points lower at 55,630. Nifty was also down by 46 points at 16,569. The Nifty had also scaled above the 16,600 mark but failed to hold on to higher levels. The correction was largely on the back of Fed uncertainty.

The concerns were more in the light of what the Fed would announce in its minutes with the broad expectations being a clear timeline on the taper of bond buying. As a result, rate sensitives like banks and realty corrected very sharply while metals gave up higher levels. Mid-cap stocks continued to stay strong even as the volatility index or VIX cooled to 12.91%. Both the FPIs and DFIs have been net buyers in Aug-21.

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