E-Paper
Sensex deep in red; experts explain why it crashed over 1,400 points
Around 11:20am, the Sensex was trading at 48,164.32. While Nifty 50 plunged 431.90 points or 2.91 per cent and was trading at 14,402.95.
The equity benchmarks nosedived on Monday with Sensex crashing more than 1,400 points or 2.98 per cent in the mid-session. Around 11:20am, the Sensex was trading at 48,164.32. While Nifty 50 plunged 431.90 points or 2.91 per cent and was trading at 14,402.95. As per experts, the spiralling Covid-19 crisis in the country and the speculation regarding the possibility of another lockdown spooked the investors which eventually led to the losses in the market. Negative cues from global markets also contributed to the sentiments of investors.
"Domestic equities do not look to be inspiring at the moment. A sharp increase in Covid-19 daily cases in the country, and possibility of large economic restrictions are expected to keep investors nervous in the near term. Further, the possibility of lockdown in large states like Maharashtra will weigh on investors' sentiments," news agency PTI quoted Binod Modi, Head Strategy at Reliance Securities, as saying.
"Additionally, recent weakness in INR may also aggravate investors' concerns. However, 4Q FY21 earnings, wherein IT majors are scheduled to deliver their numbers this week, are to be in focus," Modi also said.
Chief investment strategist of Geojit Financial Services, VK Vijaykumar expressed concerns and said, "there is profound uncertainty about its impact on the economy and markets," according to a PTI report. "The second wave of the pandemic is turning out worse than expected," he also said.
The market capitalisation of BSE-listed companies has been erased by ₹6,86,708.74 crore to ₹2,02,76,533.13 crore. As the market suffered the worse loss of the day, IndusInd Bank became the top loser in the Sensex pack as its shares tanked around 8 per cent. It was followed by SBI, Bajaj Finance, Titan, ICICI Bank Bajaj Finserv and Maruti.
On the other hand, Infosys emerged as the sole gainer.
Meanwhile, stock markets of Shanghai, Hong Kong and Tokyo were also in the red in mid-session deals, while Seoul was trading with mild gains.
(With agency inputs)
