Adding: "Indian market is performing in line with global in this down turn".
Investors wealth fell by as much as Rs 5.4 lakh crore on Tuesday as Sensex tanked almost 1,300 points in the opening trade on global market selloff.
He further said the fact is that markets were not prepared for a large sell-off and there was a bit of complacency & exuberance across equity markets which were reflected in the low IVs (implied volatility, which has reversed in past couple of days).
On Friday, February 2, the latest U.S. jobs data was released spreading fear of inflation. Tata Steel ended with a marginal gain of 0.06 per cent. Nifty too had lost more than 150 points.
Tata Motors tumbled 5.31% at Rs 375.
The Sensex fell 1,275 points to 33,482 level intraday on Monday, a day after it closed 309 points lower as Dalal Street gauged the impact of LTCG tax on equities amid lower Asian markets. "There was only minimal disruption on day 1", said Finance Secretary Hasmukh Adhia.
The rout in global equities deepened in Asia as inflation worries gripped financial markets, sending USA stock futures sinking further into the red after Wall Street suffered its biggest decline since 2011.
Indian markets were already reeling under pressure after the government presented the budget that focused on populist measures ahead of general elections in 2019 and re-imposed long-term capital gains (LTCG) tax on equities. It plunged by over 300 points or 3.00 percent.
A massive downturn in the global stock markets unleashed a selling frenzy on the domestic bourses during the day's trade. According to reports, Dow notched its biggest intraday decline in history with a almost 1,600-point drop while Wall Street erased its gains for the year, said Reuters.