Bloodbath in markets today as Sensex, Nifty plunge. Here is why

All Sensex components ended in the red, with ONGC leading the pack by tumbling 9.15 per cent. IndusInd Bank, M&M, SBI, NTPC, ITC, Axis Bank and PowerGrid shed up to 6.98 per cent.

The markets in India suffered a massive loss as the Sensex crashed more than 1,400 points on Monday, and the Nifty ended 3.14% lower at 13,328.40, wiping out six straight sessions of gains. The losses come as a new strain of the coronavirus in the UK clobbered global markets and cast a cloud over the economic recovery expected next year.

The market capitalisation of all BSE-listed companies dropped by Rs 6.59 lakh crore to stand at Rs 178.79 lakh crore. (PTI)

All Sensex components ended in the red, with ONGC leading the pack by tumbling 9.15 per cent. IndusInd Bank, M&M, SBI, NTPC, ITC, Axis Bank and PowerGrid shed up to 6.98 per cent. The market capitalisation of all BSE-listed companies dropped by Rs 6.59 lakh crore to stand at Rs 178.79 lakh crore.

All BSE sectoral indices also closed lower, with metal, oil and gas, utilities, realty, basic materials, industrials, power and bankex falling as much as 6.05 per cent. At the BSE, 2,433 companies declined, while 592 advanced and 167 remained unchanged.

Meanwhile, the rupee also plunged by 23 paise to end at a two-week low of 73.79 against the US dollar on Monday following a massive selloff in domestic equities.

Here are the developments which led to sentiments driving the market crash today:

1) Fresh lockdown has been imposed in the United Kingdom to curb the spread of new strain of coronavirus which the authorities have admitted is spreading rapidly.

2) Following the lockdown, the European shares opened lower on fears of economy taking a U-turn again if businesses are shut to control the new variant.

3) Many countries including India, Russia, Germany, Italy, Ireland have suspended all flight operations from and to the UK.

4) Also, the overhang on Brexit talks also contributed to the negative sentiments of the investors. Further lack of depth in the market owing to holiday season aided to the big fall

5) Experts fear that if the new variant spreads further the markets could fall further over fears of economic stability.

(With agency inputs)