Stocks fall on weak global cues

The benchmark indices fell 1.6 per cent on Wednesday amid a sell-off in European markets and drop in the US stock futures due to worries over rising Covid cases.

The benchmark indices dropped 1.6 per cent on Wednesday amid a sell-off in the European markets and a drop in the US stock futures because of worries over a fresh wave of Covid-19. The Sensex fell 561 points, or 1.6 per cent, to end at 34,869. The index dropped as much as 911 points from the day’s high. The Nifty fell 166 points, or 1.6 per cent, to end at 10,305. The index hit an intra-day high of 10,553 — a level last seen in early March.

While the markets traded with gains for the most part of the day, the decline in the European markets triggered profit-taking ahead of derivatives expiry on Thursday. In the past one week, the benchmark indices rallied as much as 7 per cent.

The risk-on trade — under

SENSEX SLIPS 1.6% pinned by supportive central bank action — took a beating after several nations and the US states reported record daily infections. Experts said investors are fearing that the government would re-introduce curbs, which could hamper business activity.

“In spite of opening on a positive note, markets finally ended negative, in sync with negative global cues. The rising cases of virus infections worldwide, especially in the

Americas, unnerved the global markets. Domestic cases too show no signs of abating and this must be weighing in on the investors,” said Vinod Nair, head of research, Geojit Financial Services.

During Indian market hours, most European markets traded more than 1.5 per cent lower, while the futures market pointed to a lower opening on the Wall Street.

Barring six, all the 30 Sensex components ended with losses. Banking and financial stocks were the biggest drag on the markets. Indusind Bank and ICICI Bank fell the most at 7.4 per cent each.

Aamar Deo Singh, head advisory, Angel Broking said the move to bring co-operative banks under the supervision of the Reserve Bank of India dampened investor sentiment towards banking shares.