Nifty, Sensex hit a low. How deep is the dip?

Indian equities have been on a rollercoaster ride over the past month, with sharp bouts of selling swiftly followed by bargain hunting as investors pounce on dips.

- Dipti Sharma

During this volatile phase, the benchmark indices—Nifty 50 and S&P BSE Sensex—have dropped by 5% and 4%. On Tuesday, the Nifty 50 plunged to its lowest point in over four months, and the Sensex marked a three-month low. On a closing basis, the Nifty 50 hit a low of 23,868.80 points on June 26 and the Sensex on August 6 at 78,593.07 points.

On Tuesday, the former settled 1.1% lower at 23,883.45 points while the Sensex ended 1% down at 78,675.18 points. Financial services, automobiles, and fast-moving consumer goods were the day's biggest market laggards.

Now the million-dollar question is: How much longer will this sell-off drag on before the market finds its footing?