US-China tensions, rising Covid-19 cases hit indices; Sensex falls 661 pts

The benchmark indices posted their biggest drop in more than a month as rising tensions between the US and China, coupled with a resurgence in Covid-19 cases, pushed investors to ditch riskier assets.

The benchmark Nifty ended the session at 10,607, a fall of 1.8 per cent or 195 points. The Sensex fell 661 points, or 1.8 per cent — the most since June 11 — to end the session at 36,033. Banking stocks were the biggest drag on the market as the Bank Nifty index fell 3.2 per cent. Seven of 10 major losers on the Sensex were financial