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Tuesday, July 07, 2020

Sensex plummets 561 points on spike in COVID cases

Asian markets reversed after early gains from their four-month highs and European markets fell at open as a spike in COVID-19 cases in Australia, New Zealand, China, South Korea, US (7 states) and Germany added a note of caution to global markets.

By: ENS Economic Bureau | Mumbai | Published: June 25, 2020 7:36:09 am

Sensex, Nifty, BSE Sensex, NSE Nifty, stock markets, sensex today, nifty today, Business news, Indian Express

Indian stock markets on Wednesday joined a sell-off in global markets after many countries reported a spike in COVID-19 infections. The Sensex fell 561 points to 34,868.98 and the Nifty Index declined 166 points to 10,305.30 ahead of the derivatives expiry.

“In spite of opening positive, markets finally ended negative in sync with negative global cues. The rising cases of virus infections worldwide, especially in the Americas, unnerved the global markets. Domestic cases too show no signs of abating and this must be weighing in on the investors,” said Vinod Nair, head of research at Geojit Financial Services.

Asian markets reversed after early gains from their four-month highs and European markets fell at open as a spike in COVID-19 cases in Australia, New Zealand, China, South Korea, US (7 states) and Germany added a note of caution to global markets. “In Europe, stocks extended their losses following a report that Washington is considering new tariffs on $3.1 billion of exports from the UK, France, Germany and Spain in a move that would broaden transatlantic trade tensions just as economies slowly reopen from lockdowns,” said Deepak Jasani, head–retail research, HDFC Securities.

Ajit Mishra, VP–research, Religare Broking, said, “Initially, the benchmark opened higher, taking strength from firm global cues, but profit-taking gradually pushed the index lower as the session progressed. The existence of major hurdle at 10,550 (200 EMA) in Nifty combined with caution ahead of the monthly derivatives expiry pushed the bulls slightly on the back foot.” Barring FMCG, all other indices ended in losses with banking, telecom, power and realty remaining the top losers.

“The move was on the expected lines and we may see some consolidation before the next directional move. In the absence of any major event on the local front, participants should keep a close watch on the global markets for cues. Besides, the performance of the banking and financial pack would be decisive for a further surge in the index,” Mishra said.

“Ahead of F&O expiry, markets are expected to remain volatile and investors advised to keep booking profits,” said an analyst.

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