The Indian equity benchmark fell sharply on Wednesday due to weak global cues amid widespread selling pressure. The benchmark opened lower and extended losses in the afternoon deals as the rising cases of Kovid weighed on investor sentiment. The Sensex fell to 798 points and the Nifty 50 index fell below its critical psychological level of 14,600. Analysts said Germany feared a long road to economic recovery until April 18, after which markets worldwide collapsed.
By 12:07 pm, the Sensex lost 639 points to end at 49,412 and the Nifty 50 index closed down 188 points at 14,626.
Back home, the daily COVID-19 cases hit for more than four months on Wednesday. The government has said that it will expand its immunization campaign from April to include all above 45.
Siddharth Khemka, head of retail research at Motilal Oswal Financial Services in Mumbai, told news agency Reuters, “Economic activity (virus) cases come down sharply.”
“Global market signs are not very positive. The COVID-19 case is increasing globally and is a major concern. As long as you see some frequent fluctuations in commodity prices and bond yields, in equity markets It is unlikely to come up. ” “Mr. Khemka said.
Meanwhile, selling pressure was widespread, as shares of all 11 sectors compiled by the National Stock Exchange, except for the pharma stocks index, were trading at a 2 per cent decline in the lead in the Nifty Bank index. Nifty Auto, Financial Services, IT, Metal, PSU Bank, Private Bank and Realty Index also fell by 1-2%.
Mids and smallcap stocks were also under selling pressure as the Nifty Midcap 100 and Nifty Smallcap 100 indices fell by one per cent each, while the gauge of expected volatility on the NSE – India VIX index rose more than 7 per cent.
HDFC, ICICI Bank, Reliance Industries, Infosys, HDFC Bank, Axis Bank and Kotak Mahindra Bank were among the top drugs on the Sensex. They collectively erased more than 35 points from the 30-share index.
ONGC was the top Nifty loser, with the stock falling 3.9 percent to Rs 103. Tata Steel, Hindalco, GAIL India, State Bank of India, UPL, Mahindra & Mahindra, Axis Bank, Larsen & Toubro, HDFC, ICICI Bank, SBI Life, Kotak Mahindra Bank, Tata Motors, Bajaj Finance and IndusInd Bank also have 1.5% Registered a decline of.
On the flipside, Asian Paints, Cipla, Power Grid, Sun Pharma, Dr Reddy’s Labs, Divy Labs and Hero MotoCorp were among the notable beneficiaries.
The breadth of the overall market was extremely negative as 1,763 stocks declined while 899 were on the BSE.