Market fall wipes out ` 4.5L cr

Spurt in Coronavirus cases in Europe, US trigger panic sale in global markets

The Sensex fell 811 points and the Nifty-50 over 250 points or over two per cent apiece as negative global cues from Europe and Hong Kong rattled the sentiment of investors.

The fall in the Indian market was the worst among the Asian peers which closed early. Hong Kong's Hang Seng index fell 2.06 per cent, the second worst fall after the Indian markets.

The second wave of spurt in Coronavirus cases being reported in Europe and the reports of suspicious transactions at top global banks led to sell off in European markets as it opened. This had an impact on the Indian market from around 12.30 pm and sell off intensified in the last two hours of trading impacting all sectors and segments of the market.

The Nifty-50 index lost

254.40 points or 2.46 per cent to end the day at

11,250.55. The Sensex closed 811.8 points or 2.09 per cent down at 38,034.14.

Broader market selling was even worse, BSE Midcap index fell 3.43 per cent and BSE Small-cap index fell 3.61 per cent. In the biggest single-day fall this month, investors lost notional wealth amounted to over `4.5 lakh crore.

Foreign portfolio investors and domestic institutional investors both turned net sellers of equities worth and `517.95 tively.

“Weak European markets and concerns over the rising pandemic saw a sharp sell-off in the Indian market. The global market collapsed on concerns of growing outbreak of the Coronavirus. The United Kingdom government gave an alert that the country is at a “critical point” in the Covid-19 pandemic and that a second lockdown could be needed to stop the renewed spread of the disease,” said Shrikant Chouhan, executive vicepresident, equity `539.81 crore crore respecresearch, Securities.

Only three from the Sensex and Nifty-50 stocks basket managed to close in the green — Kotak Mahindra Bank, Infosys and TCS.

Among the sectoral indices Nifty Bank (-3.36 per cent), Nifty Auto (-4.40 per cent), Nifty(-4.46 per cent) and Nifty Realty(5.98 per cent) topped the losers list.

It seems the market would remain under pressure as the American markets opened sharply lower too and Covid lockdown fears are haunting markets once again.

Kotak

THE RISING cases of Covid-19 and with most of the EU on the brink of a second wave, most heads of states in the EU are talking about a second lockdown.

ARJUN YASH MAHAJAN, Reliance Securities