Domestic markets started the week on feeble note and recorded the biggest single-day fall this month losing over 2% today tracking weak global peers. The markets were lacklustre in the first half, however, later in the day, the selling pressure was witnessed with the Nifty50 settling below 11,250 levels.
The Sensex ended 811.68 points lower at 38,034.14 while the Nifty lost 283 points to settle at 11,222. 27 out of 30 Sensex stocks end the day in the red.
On the sectoral front, all indices ended with sharp losses wherein realty, telecom and metal were the top losers. BSE Telecom biggest sectoral loser, down 5.77%.
Meanwhile, the investors lost Rs4.58 lakh crore in the mayhem as m-cap of BSE-listed firms dropped to Rs154.42cr.
The top factors that triggered today’s plunge:
Profit-booking on Nifty50 stocks: IndusInd Bank slumped over 8.5%, Tata Motors shares tumbled 7.8%, Hindalco, Tata Steel and JSW Steel among top losers. ICICI Bank, Cipla, Maruti and Infratel slipped over 5% each.
Weak global markets: Asian indices ended in the red with Chinese shares also lower with the blue-chip index down 0.8%, while the Japanese markets were closed for a public holiday. Australia’s benchmark index slipped 0.7% and New Zealand’s also slipped 0.8%.
European shares dropped to a 2-week low as surging COVID-19 cases in Europe prompted renewed lockdown measures in some countries and clouded the recovery outlook. UK’s FTSE was the biggest loser, down 3.16% followed by France’s CAC, down over 2.5% and Germany’s DAX also slumped 2.85% with the US futures too trading nearly 2% lower.
Spike in Covid-19 cases: India’s COVID-19 case tally has inched towards the 55-lakh mark with a spike of over 86,000 new cases, including over 10 lakh active cases and 88,882 deaths.
On the international front, the media reports said that the British Prime Minister Boris Johnson was pondering the second lockdown in Britain while Spain and other European countries were witnessing fresh restrictions due to the coronavirus pandemic.
India VIX surges: India VIX, the measure of fear and volatility in the market, soared 13% to 22.66.
Banking stocks slip in the red zone: The Nifty Bank ended over 700 points lower, declining 3.5%. Barring Kotak Mahindra Bank, all constituents of the index, ended with losses.
As per media reports, the Reserve Bank of India (RBI) stated that public sector banks (PSBs) have recorded frauds worth Rs19,964cr for the quarter ending June 2020 (Q1FY21). Frauds were reported in a total 2,867 cases with largest lender SBI witnessing the most cases in number terms.
Gold updates: Gold fell to its lowest in nearly two weeks hurt by a stronger dollar, while investors looked to US Federal Reserve policymakers speeches this week for clues on further stimulus measures to revive the coronavirus-battered economy. Also silver fell nearly 2% to $26.24 per ounce, platinum slipped 0.9% to $919.68 and palladium was down 1.4% at $2,324.06.
Broader markets under pressure: The broader markets too followed suit as both the Midcap and Smallcap index ended lower over 3% each. Indiabulls Housing, JSPL, Bharat Electronics, PTC, Strides amongst top Midcap losers.
