Indian markets crash wiping out Rs8.77tr
INVESTORS PRESS THE PANIC BUTTON AMID THE MASSIVE SECOND WAVE OF COVID-19 INFECTIONS
The Sensex plummeted 1,708 points while the Nifty crashed below the 14,350-level yesterday as investors pressed the panic button amid the massive second wave of Covid-19 infections across the country.
The second wave is turning out to be much worse than expected, and participants are now reassessing their recovery forecasts amid increasing localised lockdowns, traders said.
An unabated fall in the rupee sapped confidence further, they added.
Posting its biggest fall since February 26, the 30-share BSE Sensex sank 1,707.94 points or 3.44 per cent to end at 47,883.38.
Similarly, the broader NSE Nifty plunged 524.05 points or 3.53 per cent to finish at 14,310.80.
Barring Dr Reddy’s, which climbed 4.83 per cent, all Sensex stocks closed in the red.
Top loser
IndusInd Bank was the top loser, tanking 8.60 per cent, followed by Bajaj Finance, SBI, ONGC, Titan, M & M, Axis Bank, ICICI Bank and Bajaj Finserv.
Investors lost Rs8.77 trillion in the session, with the market capitalisation of BSE-listed stocks declining to Rs200.85 trillion.
India recorded yet another peak in daily Covid-19 cases with 168,912 new cases, the highest single-day rise since the pandemic began, taking the total tally to 13,527,717, according to the Union Health Ministry
data updated yesterday. The national Covid-19 recovery rate has fallen below 90 per cent.
Impact on growth
“Further implementation of lockdowns and all-time high Covid cases have dragged the market to a monthly low. This is expected to impact the economic growth of Q1 FY23 more than thought earlier,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Implications to the banking and discretionary sector are presumed to be the highest, drifting market to defensives like IT, Pharma and FMCG. This trend may happen for a couple of trading weeks, down a few weeks Covid cases are likely to
reduce, bringing growth back,” said Vinod Nair.
All sectoral indices ended with heavy losses, with BSE realty tanking 7.70 per cent, followed by industrials, metal, auto, power, finance and bankex. Broader BSE midcap and smallcap indices nosedived up to 5.32 per cent.