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Sensex tanks 740 points, Nifty ends at 14,325 amid COVID-19 scare

On the 30-components on Sensex, only four managed to close in the green— Dr Reddy’s, ICICI Bank, HDFC and L&T, rising up to 0.74 per cent

Sensex tanks 740 points, Nifty ends at 14,325 amid COVID-19 scare

(Photo: iStock)

Bearish trend continues to drive the domestic markets for the second consecutive day as Sensex and Nifty plunged 1.5 per cent led by rising COVID-19 cases in the country and fears of localised lockdowns triggered an across-the-board selloff.

Experts believe that bearish trend global cues and expiry of monthly derivative contracts added to the volatility.

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The S&P BSE Sensex slumped 740.19 points or 1.51 per cent to close at 48,440.12, while the broader NSE Nifty tanked 224.50 points or 1.54 per cent to 14,324.90.

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Maruti was the top loser in the Sensex pack, shedding 3.98 per cent, followed by HUL, Bharti Airtel, Bajaj Auto, NTPC, Bajaj Finance and UltraTech Cement.

On the 30-components on Sensex, only four managed to close in the green— Dr Reddy’s, ICICI Bank, HDFC and L&T, rising up to 0.74 per cent.

“Increased rate of infection across the country and world is creating more pessimism in the market, which has increased today due to monthly expiry. After the stellar rally, the market was on a consolidation stage during the last month, which amplified post the sudden rise in infection impacting future economic growth.

“The economic fallout in India from the reduction in world GDP growth is likely to be marginal. A fall in the rate of infection through tougher restrictions and pace in vaccination may quickly stabilise the market,” said Vinod Nair, Head of Research at Geojit Financial Services.

Binod Modi, Head – Strategy at Reliance Securities, said the market capitalisation of domestic market slipped below Rs 200 trillion for the first time after February 3, 2021, resulting in wealth erosion of over Rs 5 trillion in the last two days.

Broader BSE midcap and smallcap indices tumbled up to 2.22 per cent.

India saw 53,476 new coronavirus infections in a day, the highest single-day rise so far this year, taking the nationwide COVID-19 tally to 1,17,87,534, according to the Union Health Ministry data updated on Thursday.

Global markets retreated as investors fretted over the rising COVID-19 cases and the slow pace of vaccination in many countries.

In Asia, bourses in Shanghai and Hong Kong were in the red, while Tokyo and Seoul ended on a positive note.

Stock exchanges in Europe were trading with losses in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 1.35 per cent lower at USD 63.54 per barrel.

The Indian rupee fell by another 7 paise to settle at 72.62 against the US dollar.

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