The BSE Sensex fell as much as 702 points in intraday trade on Wednesday, while the broader Nifty slumped more than 200 points to hit the key 8,100 mark. The sharp selloff in markets has taken both ordinary investors and trading community by surprise.
Analysts said there is no single reason for the meltdown in Sensex and Nifty, though some dealers cited strong selling on algorithmic trading platforms for today's fall.
NDTV Profit's Prashant Nair spoke to Anil Manghnani of Modern Shares and Stock Brokers, who said the 200-point drop in Nifty is surprising. (Watch full interview)
"This is the first real correction in markets since February 2014, when the rally started in domestic markets," Mr Manghnani said.
He expects the Nifty to consolidate around 8,085, which is the 50-day exponential moving average, considered a key support by technical analysts.
Mr Manghnani said markets are getting oversold now, but investors should wait for the Nifty to settle before buying stocks.
"Catching a falling knife has never made money because rallies are being sold into and stop losses are getting triggered," he said.
Mr Manghnani said selling should subside around 8,085-8,065 on Nifty, but in the worst case scenario, the Nifty could hit a low of 7,900.
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