The benchmark equity indices on the BSE and National Stock Exchange (NSE) fell around 3 per cent on Monday taking cues from their global peers.
The S&P BSE Sensex ended 1,406.73 points (3.0 per cent) lower at 45,553.96, while the Nifty 50 slipped 432.15 points (3.14 per cent) to settle at 13,328.40. Both the indices had opened on a marginally negative note earlier in the day and were largely rangebound throughout most of the morning session and early afternoon session.
However, during the late afternoon deals both the indices turned volatile and initially skid over 2 per cent in line with their European peers. The Sensex and Nifty fell further and hit their day’s low of 44,923.08 and 13,131.45 respectively before recouping some losses towards the end of the trade.
All the constituents of the 30-share BSE benchmark ended in a sea of red on Monday. ONGC, IndusInd Bank, Mahindra & Mahindra (M&M), State Bank of India (SBI), NTPC and ITC were the biggest losers in Monday’s trade slipping between 5.38 per cent to 9.15 per cent. See heatmap below
Among sectoral indices, the key Nifty Bank index fell 4.10 per cent on Monday dragged by RBL Bank, The Federal Bank and Bandhan Bank. Apart from banks, the Nifty Metal index declined 5.54 per cent weighed by National Aluminium Company, Welspun Corp and Hindustan Copper. The Nifty Auto index too fell 4.62 per cent driven by Tata Motors and M&M.
Here’s how the sectoral indices performed:
In the broader market, the S&P BSE MidCap index ended at 17,064.98 on Monday, down 736.20 points (4.14 per cent), while the S&P BSE SmallCap fell 812.11 points (4.57 per cent) to settle at 16,956.99.
“The new variant of the Novel Coronavirus in the UK spooked markets as we witnessed intense selling in pivotal throughout afternoon trade. While the street was bracing for a correction this week after a sharp up move, the sheer velocity of the fall across broader markets took the bulls by surprise as practically none of the key indices constituents were in the green today,” S Ranganathan, Head of Research at LKP Securities, said in a note after the market hours ended.
European shares fell 2 per cent on Monday, the dollar strengthened and market volatility surged amid growing unease over the economic impact of a new coronavirus strain in Britain which has seen several European countries shut their borders to the UK.
Losses of more than 1 per cent on UK equities were led by 6-7 per cent tumbles at banks Lloyds and Barclays.
German shares fell around 2 per cent, while pan-European travel and leisure stocks lost more than 5 per cent.
Earlier, Asian shares outside Japan dipped 0.2 per cent after hitting a string of record peaks last week. Japan’s Nikkei shed 0.4 per cent, off its highest since April 1991.
Futures for the S&P 500 were down 0.6 per cent, despite opening stronger after US Senate majority leader Mitch McConnell said an agreement had been reached by congressional leaders on a roughly $900 billion COVID-19 relief bill.
— global market input from Reuters
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