Second Covid-19 wave hits investors; Sensex tanks 1,708 pts, ends below 48K

Stock market updates: It was circa March 2020 at Dalal Street on Monday as fears that the government could go for stricter lockdowns to curb the second wave of Covid-19, hampering the economic recovery, spooked market participants. Such was the panic selling that investor wealth tumbled by nearly Rs 8 trillion on the BSE with the m-cap sliding to Rs 201 trillion by close. 

Among the headline indices, the benchmark S&P BSE Sensex plunged nearly 1,900 points while the Nifty50 cracked about 590 points in the intra-day deals to hit lows of 47,693 and 14,249, respectively.

At close, the headline indices were 3.5 per cent lower each at 47,883 levels and 14,311 level, down 1,708 points and 524 points, respectively. 

Only one constituent on the Sensex (Dr Reddy's Labs) and four on the Nifty (Dr Reddy's Labs, Cipla, Divis Labs, and Britannia) ende the day in the green. Among the losers were Tata Motors, Adani Ports, IndusInd Bank, Bajaj Finance, UPL, SBI, Hindalco, and Shree Cement, down  in the range of 5.6 per cent to 10 per cent.

Broader markets, on the other hand, faced an even severe blow with the S&P BSE MidCap and SmallCap indices dropping 5 per cent each.

Sectorally, the Nifty PSU Bank index plummeted 9 per cent, Nifty Realty slipped 7 per cent, and Nifty Bank, Private Bank, Metal, and Auto indices skidded between 5 per cent and 6 per cent. 

Global markets
Global stock markets sank on Monday as investors waited to see whether U.S. earnings would justify sky-high valuations, while a rally in bonds could be tested by what should be strong readings for U.S. inflation and retail sales this week.

MSCI’s All Country World Index, which tracks stocks across 49 countries, was down 0.25 per cent after the start of European trading, off Friday’s record high.

European shares eased off record highs as investors held off from making big bets before earnings season. The pan-European STOXX 600 index was down 0.3 per cent. The UK's FTSE mid 250 index slipped 0.6 per cent. Germany’s DAX slipped 0.1 per cent and France’s CAC 40 fell 0.2 per cent. Italy’s FTSE MIB was the sole gainer, up 0.05 per cent.

Earlier in Asia, Tokyo’s Nikkei edged down 0.6 per cent. South Korean stocks were near flat.

(With inputs from Reuters)


 

4:36 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Strong profit booking has witnessed in today’s session and the index closed a day at 14355 with loss of more than three per cent formed a bearish candle on the daily chart. the index breached most of the good support in today’s session now 14250 will be immediate and strong support on the downside any break down below said levels we may see more pressure in index & if managed to hold some bounce can be expected, strong hurdle on the higher side coming near 14500-14600 zone one can use that level to lock gains

4:26 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Further implementation of lockdowns and all-time high covid cases have dragged the market to a monthly low. This is expected to impact the economic growth of Q1fy23, more than thought earlier. Implications to the banking & discretionary sector are presumed to be the highest, drifting market to defensives like IT, Pharma and FMCG. This trend may happen for a couple of trading weeks, down a few weeks covid cases are likely to reduce, bringing growth back

4:13 PM

MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets started the week on a feeble note and lost over three and a half percent. The benchmark indices opened a gap down and continue to plunge southwards due to rising COVID-19 cases, vaccine supply issues and the possibility of lockdown in various parts of the country. Selling pressure widened as the day progressed and consequently the Nifty ended lower by 3.5% at 14,310 levels. The broader markets too were not spared and it ended lower in the range of 4.8-5.3%. On the sector front, all the indices ended with negative bias wherein PSU banks, auto and metals were the top losers.

 

Markets will first react to TCS results and macroeconomic data viz. IIP and CPI inflation in early trade on Tuesday i.e. April 13. The rising Covid cases combined with the fear of lockdown have pushed the bulls completely on the back foot. We thus suggest maintaining a cautious stance in the near term. Besides, stock-specific volatility will remain high, with the start of Q4FY21 earnings and investors should focus on sectors such as IT, FMCG and Pharma as they are expected to post strong numbers. On the benchmark front, Nifty has the next critical support at 14,100 levels. In case of a rebound, the 14,500-14,650 zone would act as a hurdle.

3:54 PM

BSE Snapshot :: M-cap of all BSE listed firms plunges by Rs 9 trillion

3:51 PM

Stocks that dragged the Sensex lower today

3:49 PM

Demand concerns hit metal counters; index slumps 6%

3:48 PM

PSU Banks bleed: Nifty PSU Bank index sinks 9%

3:45 PM

Sectoral trends on the NSE

3:41 PM

Sensex Heatmap at Close

3:34 PM

CLOSING BELL

At close, the headline Sensex and Nifty indices were 3.5 per cent lower each at 47,883 levels and 14,311 level, down 1,708 points and 524 points, respectively. 

 

3:31 PM

BUZZING STOCK:: Dr Reddy's Laboratories surges 6% on EUA approval to Sputnik V

3:24 PM

Rupee will be in suspended animation for some time

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3:13 PM

Anupam Rasayan rebounds 13% from day's low on repaying debt worth Rs 471 cr

Shares of Anupam Rasayan moved higher by 6 per cent to Rs 586, bouncing back 13 per cent from day’s low of Rs 517, on the BSE on Monday after the company said it has re-paid significant debt, utilising the initial public offer (IPO) proceeds. The rally oushed the stock to its highest level since its listing on March 24, 2021. Moreover, it was trading above its issue price of Rs 555 per share and has recovered 24 per cent from its low of Rs 472, touched on March 31. READ MORE

2:57 PM

Expert panel likely to take call on Sputnik V vaccine at key meet today

The Subject Expert Committee (SEC) is likely to meet today to take up Sputnik V application for Emergency Use Authorisation (EUA) in India, said sources.

 

Russia's Sputnik V vaccine did not get the EUA on Thursday as the SEC, following the meeting, asked for more information.

 

According to the sources, 'The SEC has asked for more information in context with the approval of the Russian vaccine." READ MORE
 

2:51 PM

Fed's Powell sees US boom ahead, with coronavirus still a risk

The US economy is poised for an extended period of strong growth and hiring, the chair of the Federal Reserve has said in an interview broadcast, though the coronavirus still poses some risk. Chair Jerome Powell, speaking to CBS' 60 Minutes," also said that he doesn't expect to raise the Fed's benchmark interest rate, currently pegged at nearly zero, this year. And he downplayed the risk of higher inflation stemming from sharp increases in government spending and expanding budget deficits. READ MORE