Mumbai, Jan. 15: The Reliance Power IPO may have generated a huge response, but it affected the stock markets as investors liquidated some of their holdings to participate in the issue, which led to a 477-point fall in the sensex.

Led by Bharti Airtel and ICICI Bank, the market continued to fall for the second day before settling at 20251.09. The 50-share Nifty of the National Stock Exchange too tumbled 132.55 points, or 2.14 per cent, to close at 6074.25 points.

After a strong opening in the morning, the sensex moved up 620 points but failed to sustain the level later in the day. It registered losses of about Rs 1,24,349 crore in a total market capitalisation of Rs 7,057,753.78 crore.

Technology, power, and bank were the biggest sectoral losers with their shares plummeting by 2.59, 2.45 and 2.39 per cent, respectively.

Market experts could not find any fundamental reason for today’s fall.

Many analysts, however, believe that the market will remain on the growth track for some time now.

The sensex hardly had any negative cues to pick up from other Asian indices, most of which ended flat today, except the marginal losses suffered by Japan’s Nikkei.

“The market is overvalued, and should fall another 1000 points to gain some ground. Some investors will also invest in the forthcoming public offers, and that will create some short-term liquidity crisis here. I am bullish about food processing stocks and those associated with commodity discovery activities,” said Divyesh Shah, investor and leading analyst.

In recent times, the market has moved in an unpredictable manner and many expect the volatile mood to continue for some time.

Investors are optimistic about a rate cut by the US Federal Reserve in its upcoming review on January 30.

With parliamentary elections scheduled for next year, analysts expect this year’s budget to have some market-friendly signals.

They are of the opinion that the budget will play a pivotal role in governing the market’s course for the rest of the year.