Stocks extend losses as virus cases spike

MUMBAI: The BSE Sensex crashed over 1,375 points on Monday, pressured by heavy selling in banking, finance and auto counters, as sentiment remained grim amid a steady rise in coronavirus cases.

The number of covid-19 cases in India shot past the 1,000-mark on Monday, with the death toll rising to 29.

Investors dumped risky assets after multiple ratings agencies cut India’s growth outlook, traders said. After plunging over 1,500 points during the day, the 30-share BSE barometer ended 1,375.27 points or 4.61% lower at 28,440.32. Similarly, the NSE Nifty fell 379.15 points, or 4.38%, to close at 8,281.10.

Bajaj Finance was the top laggard in the Sensex pack, tanking nearly 12%, followed by HDFC, Tata Steel, HDFC Bank, ICICI bank, Kotak Mahindra Bank and Maruti, which shed up to 10.92%. Only six Sensex constituents ended in the green, led by Tech Mahindra (4.94%), Nestle (4.49%), Axis Bank (2.50%) and HUL (2.19%).

“Indian markets started the week on a negative note tracking volatile global cues in Asian markets as coronavirus-fuelled volatility gripped global equities and other markets, with oil prices seen plunging,” said Narendra Solanki, head of equity research (fundamental), Anand Rathi.

Besides Fitch Solutions and India Ratings revising their India GDP growth forecasts, the International Monetary Fund (IMF) had on Friday said the world has entered a recession as bad or worse than in 2009.

“As expected, the markets have set aside the stimulus measures announced by the RBI and the government, and focused on the rising virus infections and its impact on the Indian economy. With a global recession already declared by the IMF, the recessionary forces and general uncertainty are forcing investors, especially the FIIS, to redeem their investments. CPI for Industrial workers i s due tomorrow, although it is unlikely to have an effect in the current scenario,” said Vinod Nair, head of research at Geojit Financial Services.

BSE realty, finance, bankex, auto and telecom indices tumbled up to 7.01%, while healthcare and FMCG ended with gains. Broader BSE midcap and smallcap indices fell up to 2.13%.