Market Reality
India's equity markets, long buoyed by strong economic growth and rising corporate earnings, are now facing a sharp and prolonged correction.
Domestic indices snapped their winning streak on Wednesday and ended in red territory with Sensex ending nearly 346 points lower after a highly volatile session.
After opening on a positive note, the S&P BSE Sensex sank 594.26 points from the day’s high and finally settled 345.51 points, or 0.95 per cent, lower at 36,329.01. Similarly, the NSE Nifty dropped 93.90 points, or 0.87 per cent, to close at 10,705.75.
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Heavyweights like Reliance Industries, Infosys and TCS played a crucial role in dragging the 30-share index. However, Bajaj Finance, which tumbled over 4 per cent was the top laggard on the BSE, followed by Asian Paints, Bajaj Finserv, HCL Tech, Maruti and Infosys.
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On the other hand, IndusInd Bank, SBI, HUL, Tata Steel and ITC were among the top gainers.
On the broader market, the S&P BSE MidCap index lowered by 0.39 per cent while the S&P SmallCaP dropped 0.43 per cent.
According to traders, domestic market followed volatility in global equities as rising number of COVID-19 cases across the world stoked concerns over economic recovery.
The number of cases around the world linked to the disease has crossed 1.17 crore and the death toll has topped 5.43 lakh.
In India, the number of infections has spiked to 7.42 lakh, with 20,642 fatalities.
Bourses in Shanghai and Hong Kong ended with gains, while Tokyo and Seoul closed in the red.
Stock exchanges in Europe too began on a negative note.
Meanwhile, international oil benchmark Brent crude futures fell 0.16 per cent to $43.01 per barrel.
On the currency front, the rupee depreciated 9 paise to settle at 75.02 against the US dollar.
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