Benchmark indices drop 3% before settling 1.8% lower, amid Covid-19 surge, new restrictions
The worsening coronavirus crisis triggered yet another sell-off in the domestic stock market on Monday, with the benchmark indices dropping more than 3 percent before recouping some of the losses.
A sharp jump in Covid-19 cases and fresh curbs to contain the spread of the virus has stoked concerns about the revival of the economy and corporate earnings, prompting some investors to pull back.
After dropping as much as 1,469 points, or 3 percent, the Sensex settled 883 points, or 1.8 percent, lower at 47,949, while the Nifty 50 index fell 258 points, or 1.8 percent, to finish at 14,359. Both the indices had dropped more than 3 percent on the previous Monday.
Investor wealth on Monday tumbled over Rs 3.53 trillion, and the market capitalization of all BSE-listed companies stood at Rs 201 trillion at the close of trade.
The latest sell-off came as the daily Covid-19 tally in the country crossed a record 273,810. The spike in new cases was accompanied by a severe shortage of medicines and other essentials, putting a spotlight on the country’s weak healthcare infrastructure. Health experts have raised concerns that a possible new variant could spread more rapidly.
The rise in Covid-19 cases has forced many states to impose lockdowns of varying intensity. Delhi on Monday announced a week-long curfew.
Last week, Maharashtra, one of the biggest contributors to the country's gross domestic product (GDP), imposed strict curbs on movement.
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