Sensex dips 1,069 pts on economic worries

MUMBAI: Indian markets plunged nearly 3.5% on Monday as disappointment over the stimulus package and the mounting number of coronavirus disease (Covid-19) infections prompted investors to dump stocks.

The BSE Sensex ended at 30,028.98, down 1,068.75 points, or 3.44%, while the 50-share index Nifty closed at 8,823.25, down 313.60 points, or 3.43%. The India volatility index rose 7.58% to close at 40.90, reflecting renewed investor anxiety.

After Prime Minister Narendra Modi announced on May 12 a ₹20-trillion stimulus package and the goal of national self-reliance, the government has rolled out a series of measures addressing small businesses, migrant workers, the farm sector, and rural jobs, among others.

However, analysts said that the stimulus broadly does not address the urgent problems of weak consumption and an unfolding humanitarian crisis.