The benchmark equity indices on the BSE and National Stock Exchange (NSE) began the new financial year 2020-21 on a negative note as they ended around 4 per cent lower on Wednesday.
The S&P BSE Sensex declined 1,203.18 points (4.08 per cent) to end at 28,265.31. the broader Nifty 50 ended at 8,253.80, down 343.95 points (4.00 per cent). Both the indices had opened around 1 per cent lower each and traded lower throughout the day.
During the intraday trade, the Sensex cracked as much as 1,395.06 points (4.73 per cent) to 28,073.43. Likewise the Nifty too had fallen as much as 399.40 points (4.65 per cent) to 8,198.35.
As many as 26 out of 30 stocks on the Sensex ended in the negative territory on Wednesday. The losses were led by Tech Mahindra, Kotak Mahindra Bank, Tata Consultancy Services (TCS), Infosys, Axis Bank and State Bank of India (SBI). (see heatmap below)
All the sectoral indices on NSE ended in a sea of red on the first day of the new fiscal year 2020-21. The Nifty IT index was the worst performer of the day, falling 5.48 per cent weighed by Tech Mahindra MindTree, TCS and Infosys. The information technology index was followed by Nifty Bank index which declined 4.92 per cent dragged by Kotak Mahindra Bank, Axis Bank, Punjab National Bank (PNB) and SBI.
Here’s how the sectoral indices performed:
In the broader market, the S&P BSE 500 index fell 369.35 points (3.33 per cent) to settle at 10,728.88. This apart, the S&P BSE MidCap index ended at 10,339.98, down 229.95 points (2.18 per cent) and S&P BSE SmallCap index closed at 9,506.91, down 102.01 points (1.06 per cent).
“The first day of the financial year started off on a negative note, impacted by the negative global markets and also domestic uncertainties with regards to Bank Stressed assets and Auto numbers. FIIs have net sold around Rs 62,000 crores in Equity in March and with virus infections increasing, markets are anticipating a worsening of the situation,” Vinod Nair, Head of Research at Geojit Financial Services said in a post-market statement.
The rupee market was shut on Wednesday due to the annual closing of the banks. The Indian currency had settled at had ended on a flat note at 75.60 against the US dollar on Tuesday. It logged a massive 9.36 per cent or 646 paise loss during the 2019-20 fiscal year, mostly due to weakened sentiment in the wake of the coronavirus outbreak, according to a report by news agency PTI.
The markets will remain closed on Thursday on account of Ram Navami and will reopen on Friday.
The world markets fell on Wednesday as the coronavirus threat ensured an ugly start to the second quarter for equities and commodities.
Traders headed for the safety of government bonds, the dollar and gold as evidence continued to mount that the virus was sending the global economy into a deep recession.
Tokyo’s Nikkei slumped 4.5 per cent after the worst plunge in factory activity in almost a decade. The pan-European STOXX 600 sank 3.2 per cent and Wall Street futures dived 3.1 per cent after a dire forecast of likely US coronavirus deaths.
Wall Street tumbled on Tuesday, capping the biggest quarterly fall since 1987 for the Dow Jones and the steepest for the S&P 500 since the financial crisis.
– With global market inputs from Reuters
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