The domestic stock markets fell heavily on Monday amid rising cases of coronavirus infection and sell-off globally. The 30-share BSE Sensex lost 811.68 points, or 2.09 percent, to close at 38,034.14. The National Stock Exchange’s Nifty (NSE Nifty) also dipped by 254.40 points, or 2.21 percent, to close at 11,250.55. This huge fall in the share market resulted in a loss of Rs 4.58 lakh crore to investors.
India VIX, the index of concern in the market, jumped more than 13 percent to 22.65. This shows the perception of the market community which is expecting huge fluctuations in the market.
Negative Global Signal
Vinod Nair, head of research at Geojit Financial, said, “Indian benchmark indices fell victim to profit booking in the second half of the business.” This was in line with global cues that became negative as Corona cases increased in many countries, including Europe. Additional restrictions are being imposed in Europe as cases grow.
IndusInd Bank was the biggest loser among the Sensex stocks. It declined by over 8 percent. Apart from this, other major stocks which fell included Bharti Airtel, Tata Steel, ICICI Bank, Mahindra & Mahindra, Maruti, Axis Bank, and ONGC. On the other hand, Kotak Bank, Infosys, and TCS are among the profitable stocks. According to traders, the sudden sell-off in the major stock markets of the world had an impact on the domestic stock markets amid concerns over rising cases of Covid-19 in Europe.
State Of Global Share Markets
Globally, other markets in Asia saw a significant decline in China’s Shanghai, Hong Kong, and South Korea’s Seoul. Major trading in Europe also saw heavy selling in early trade and declined by three percent. Meanwhile, global oil standard Brent crude fell 2.04 percent to $ 42.27 a barrel. Here, the rupee strengthened 7 paise to close at 73.38 against the US dollar in the foreign exchange market.