The equity barometers declined further in mid-morning trade, mirroring weak global cues. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 759.28 points or 2.25% at 33,021.61. The Nifty 50 index lost 216.45 points or 2.17% at 9,756.45.
Asian shares tumbled while the US Dow Futures crashed 958 points on Monday as new coronavirus cases trend higher in the US and flare up in Beijing and Tokyo. China recorded dozens of new COVID-19 cases in recent days, all linked to a major wholesale food market. Authorities have reportedly closed the centre and locked down nearby housing districts. The United States reported more than 25,000 new cases on Saturday.
In the broader market, the S&P BSE Mid-Cap index fell 1.09% while the S&P BSE Small-Cap index slipped 0.11%.
The market breadth turned negative. On the BSE, 1068 shares rose and 1143 shares fell. A total of 181 shares were unchanged.
India reported 1,53,106 active cases of COVID-19 infection and 9,520 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 79,12,981 far with 4,33,394 deaths, according to data from Johns Hopkins University.
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Foreign portfolio investors (FPIs) sold shares worth Rs 1,311.49 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,945.15 crore in the Indian equity market on 5 May, provisional data showed.
Buzzing Index:
The Nifty Pharma index shed 0.53% to 9,929.70. It rose 0.5% in the previous session.
Piramal Enterprises (down 1.78%), Divi's Laboratories (down 1.67%), Glenmark Pharmaceuticals (down 1.45%), Aurobindo Pharma (down 0.89%), Sun Pharmaceutical Industries (down 0.58%), Cipla (down 0.41%), Abbott India (down 0.36%), Alkem Laboratories (down 0.35%) and Wockhardt (down 0.28%) declined.
Strides Pharma Science (up 1.62%), IPCA Laboratories (up 0.49%) and GlaxoSmithKline Pharmaceuticals (up 0.35%) advanced.
Cadila Healthcare (down 0.49%) and Dr Reddy's Laboratories (down 0.64%) have entered into a non-exclusive licensing agreement with Gilead Sciences to register, manufacture and sell remdesivir, a potential treatment for COVID-19. Remdesivir, an investigational antiviral therapy developed by Gilead, received Emergency Use Authorization (EUA) by the US FDA to treat hospitalised patients with severe COVID-19 illness.
Lupin rose 2.75% after the company said plans to approach the US health regulator for re-inspection of its manufacturing plants in Goa, Pithampur (Madhya Pradesh) and Somerset (US) in the next few months.
Global Markets:
Overseas, Asian stocks are trading lower on Monday after China reported an outbreak of new infections in Beijing and reimposed precautions to prevent it from spreading. Investors fear that gradual lifting of lockdowns and restarting of travel could result in fresh waves of coronavirus cases.
Chinese economic data for May released Monday stated that the industrial production in the country for that month rose 4.4% year-on-year while retail sales declined 2.8% year-on-year in May.
The US stocks finished session finished session higher after bouncing between losses and gains on Friday, 12 June 2020, as bargain hunting following a sharp losses a day earlier. However, market gains were capped as continued worries about the economy amid emerging second wave of the epidemic.
Adding to the positive sentiment, the University of Michigan released a report showing a continued rebound in US consumer sentiment in the month of June. The preliminary report showed the consumer sentiment index for June climbed to 78.6 from 72.3 in May and 71.8 in April.
Meanwhile, a separate report from the Labor Department showed a bigger than expected jump in US import prices in the month of May. The Labor Department said import prices surged up by 1% in May after plunging by 2.6% in April.
Fears of an emerging second wave of the epidemic in the US persist, with half a dozen states, including Texas and Arizona, facing rising infections of COVID-19. The Federal Reserve's indication earlier this week of a long road to recovery and rising COVID-19 cases in the United States have cast a pall over investor bets on a swift economic rebound.
Photoshop maker Adobe Inc rose after posting a better-than-expected quarterly profit, driven by strong demand for its cloud software.
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