Mumbai: Equity benchmark Sensex plummeted 883 points on Monday following a massive across-the-board selloff as mounting COVID-19 cases spooked domestic investors.
After crashing over 1,469 points in early trade, the 30-share BSE index pared some initial losses but still ended 882.61 points or 1.81 per cent lower at 47,949.42.
Similarly, the broader NSE Nifty tanked 258.40 points or 1.77 per cent to 14,359.45.
PowerGrid was the top loser in the Sensex pack, slumping over 4 per cent, followed by ONGC, IndusInd Bank, Kotak Bank, L&T, Asian Paints and Bajaj Auto.
On the other hand, Dr Reddy’s and Infosys were the only gainers.
“Domestic equities, which were looking resilient for last couple of days, fell sharply on sharp spike in COVID-19 cases across the country and enhanced economic restrictions imposed by several states. Announcements of wider mobility restriction by Rajasthan and Delhi governments dented investors’ sentiments,” said Binod Modi, Head Strategy at Reliance Securities.
Barring pharma and IT, which remained resilient, all key sectoral indices witnessed sharp correction. Financials and automobiles witnessed steeper correction. Notably, volatility index soared by over 11 per cent, which does not augur well. Investors’ wealth got eroded by over Rs 3 trillion today, he added.
India’s total tally of COVID-19 cases crossed 1.50 crore with a record single-day rise of 2,73,810 new coronavirus infections, while the active cases surpassed the 19-lakh mark, according to the Union Health Ministry data updated on Monday.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a positive note.
Stock exchanges in Europe were also largely trading with gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude was trading 0.25 per cent lower at USD 66.60 per barrel.
Gold Jumps Rs 411; Silver Gains Rs 338
Gold rallied by Rs 411 to Rs 47,291 per 10 gram in the national capital on Monday reflecting strong buying in the global precious metal and rupee depreciation, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 46,880 per 10 gram.
Silver also gained Rs 338 to Rs 68,335 per kilogram from Rs 67,997 per kilogram in the previous trade.
The Indian rupee slumped 52 paise to 74.87 against the US dollar in opening trade on Monday.
In the international market, gold was trading with gains at USD 1,787 per ounce and silver was quoting marginally higher at USD 26.08 per ounce.
“Gold prices rallied on weaker dollar and fall in US bond yields,” according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.
Navneet Damani, VP Commodities Research, Motilal Oswal Financial Services, “Gold continues to edge higher, hovering near a seven-week peak hit in the previous session, as a softer dollar and a retreat in US Treasury yields boosted demand for the bullions.”
Rupee Drops By 52 Paise To 74.87 Against US Dollar
The rupee plunged by 52 paise to close at 74.87 (provisional) against the US dollar on Monday amid a lacklustre trend in the domestic equities as investors fretted over the prospects of lockdown in some parts of the country amid a surge in COVID-19 cases.
At the interbank forex market, the local unit opened at 74.80 against the greenback and traded in the range of 74.79 to 75.05 during the day.
The rupee finally ended at 74.87 against the American currency, registering a fall of 52 paise over its previous close. On Friday, the rupee had settled at 74.35 a dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.49 per cent to 91.11.
Forex traders said the surge in coronavirus infections over the weekend increased the risk of more broadbased lockdowns.
Delhi Chief Minister Arvind Kejriwal announced a lockdown from 10 pm on Monday night till 5 am next Monday in view of an exponential rise in coronavirus cases and the city’s health system being stretched to its limits.
India’s total tally of COVID-19 cases crossed 1.50 crore with a record single-day rise of 2,73,810 new coronavirus infections, while the active cases surpassed the 19-lakh mark, according to the Union Health Ministry data updated on Monday.
Registering a steady increase for the 40th day in a row, the active cases have increased to 19,29,329 comprising 12.81 per cent of the total infections, while the national COVID-19 recovery rate has dropped to 86 per cent.
Meanwhile, Brent crude futures, the global oil benchmark, was trading 0.33 per cent down at USD 66.55 per barrel.
On the domestic equity market front, the BSE Sensex ended 882.61 points or 1.81 per cent lower at 47,949.42, while the broader NSE Nifty declined by 258.40 points or 1.77 per cent to 14,359.45.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, as they purchased shares worth Rs 437.51 crore on Friday, as per provisional data.
(This story is a compilation of 3 PTI stories)