The benchmark equity indices on the BSE and National Stock Exchange ended over 5.5 per cent lower on Monday tracking losses in the global markets and weak domestic macro-economic data.
The S&P BSE Sensex declined 2,002.27 points (5.94 per cent) to settle at 31,715.35, while the Nifty 50 ended below the 9,300-mark at 9,293.50, down 566.40 points (5.74 per cent). This was their biggest one-day slide in over a month.
Earlier in the day, both the frontline indices had opened over 4 per cent lower and slipped over 6 per cent during the intraday trade.
On the Sensex, ICICI Bank, Bajaj Finance, Housing Development Finance Corporation (HDFC), IndusInd Bank, Axis Bank and Maruti Suzuki India were the biggest losers of the day. Bharti Airtel and Sun Pharmaceutical Industries were the only two stocks that managed to end in green on Monday. (see heatmap below)
All the sectoral indices ended in a sea of red except the Nifty Pharma index which settled 0.40 per cent higher. Apart from this, the key Nifty Bank index ended 8.32 per cent lower weighed by ICICI Bank, The Federal Bank and IndusInd Bank. The Nifty Financial Services index fell 8.43 per cent weighed by ICICI Bank, Bajaj Finance and HDFC.
Similarly, the Nifty Metal index cracked 7.86 per cent dragged Hindalco Industries and Vedanta. The Nifty Auto index too fell 7.21 per cent driven by Bharat Forge, Motherson Sumi Systems and Tata Motors.
Here’s how the sectoral indices performed:
In the broader market, the S&P BSE MidCap closed at 11,502.59, down 510.86 points (4.25 per cent), while S&P BSE SmallCap index settled at 10,753.58, down 348.26 points (3.14 per cent).
“In sync with global markets, the Indian benchmark indices lost around 5.6% with an increase in the volatility index by around 28 per cent. Globally, rising trade war tensions between US-China and domestically, dire economic news added to the negativity. The extension of the lockdown and the fear that the economy and businesses will take longer to get back on track impacted the markets. Indian market will continue to be driven by global news flow and domestic earnings commentary,” Vinod Nair, Head of Research at Geojit Financial Services said in post-market statement.
The rupee depreciated by 64 paise to settle at 75.73 against the US dollar on Monday tracking heavy selloff in domestic equities and a strengthening greenback overseas, news agency PTI reported.
The rupee opened weak at 75.70 at the interbank forex market and then lost further ground to finally end at 75.73, down 64 paise over its last close. During the day the domestic unit saw an intra-day high of 75.65 and a low of 75.80. It had settled at 75.09 against the US dollar on Thursday.
Manufacturing sector activity hits record low in April
India’s manufacturing sector activity witnessed an unprecedented contraction in April amid national lockdown restrictions, following which new business orders collapsed at a record pace and firms sharply reduced their staff numbers, a monthly survey said on Monday.
The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago.
European stock markets and oil prices fell on Monday as a spat between top US officials and China over the origin of the coronavirus fuelled fears of a new trade war, derailing a rebound in global markets.
European shares opened down 2.5 per cent with US stock futures trading close to 1 per cent in the red.
Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.5 per cent, pulled down by Hong Kong where the Hang Seng returned from a two-session holiday with its biggest drop in six weeks.
– with global market input from Reuters
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