Domestic stock markets on Tuesday plunged 3 per cent as the pain in oil markets led to a global sell-off. The Sensex plunged by 1,011 points to 30,636.71 and the NSE Nifty Index lost 280 points (3.03 per cent) to 8.981.45 amid heavy selling pressure.
The rupee also ended 29 paise lower at 76.83 per dollar against Monday’s close of 76.54.
After opening gap down, Indian markets tracked weak global cues and remained under pressure throughout the session. The weak oil demand due to COVID-19 pandemic and lockdown in countries continued to drag oil prices into the negative territory, impacting the outlook on the global economy, analysts said. Oil prices were still crashing after a stunning collapse on Monday that saw US crude futures plunge below zero for the first time in history.
S Ranganathan, Head of Research at LKP Securities, said, “Manifestation of multiple events took a heavy toll on crude oil. Financials pounded the markets since morning with no respite whatsoever. Advance-decline ratio was skewed towards the latter. Barring some pharma names, nothing whatsoever was spared among the heavy weights”.
Eye on earnings
Corporate earnings have been impacted by the pandemic-related shutdowns. Post earnings management guidance has also not given clear indication about the recovery path. Earnings results will be in focus for the future course of the company business.
After the US crude crash, markets, in sync with global markets traded negatively, as the extent of the impact of lockdowns and the global slowdown is becoming evident. “Corporate earnings have been impacted by the pandemic related shutdowns. Post earnings management guidance has not given clear indication about the recovery path. Earnings results will be in focus for the future course of the company business,” said Vinod Nair, head of research at Geojit Financial Services.
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