As bears took hold of D-Street in the late afternoon on Wednesday, December 20, the domestic benchmark indices, the Sensex and Nifty 50, settled with significant losses.
Market watchers believe that the correction was long overdue due to the overvalued mid- and small-cap stocks, and they linked the drop to profit booking.
The 30-share BSE Sensex ended the day at 70,385.09, down 1,052.10 points, or 1.47 percent, while the Nifty 50 finished the day at 21,106.40, down 346 points, or 1.62 percent.
With a 7% gain in December, the Nifty 50 is on track to have its best month since July 2022.
The Nifty Smallcap 100 index fell 5% from the day's high to a low of 14,951, while the Nifty Midcap 100 index fell 4.5% from the day's high.
Due to predictions of a rate decrease in the first half of 2024, IT businesses, who mostly get their income from the US market, have gained almost 10% in the last two weeks.