Domestic stock markets gave up opening gains in volatile trade on Tuesday amid weakness across Asian shares, as rising global COVID-19 cases and concerns over fresh lockdowns in Europe weighed on sentiment. The S&P BSE Sensex index fell 503 points – or 1.32 per cent – to 37,531.14, and the broader NSE Nifty 50 benchmark slid to as low as 11,084.65, down 165.9 points – or 1.47 per cent – from its previous close. A selloff across sectors, led by financial, automobile and metal shares, dragged the markets lower.
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At 11:37 am, the Sensex traded 257.50 points – or 0.68 per cent – lower at 37,776.64, while the Nifty was down 73.00 points – or 0.65 per cent – at 11,177.55.
Zee Entertainment, GAIL, Adani Ports, Tata Motors and Tata Steel, trading between 3.84 per cent and 6.74 per cent lower, were the worst hit among 47 laggards in the 50-scrip benchmark index.
Reliance Industries, Infosys and HDFC were the biggest drags on Sensex, together accounting for more than 150 points in its fall.
The National Stock Exchange’s India VIX index – which gauges the expectation of volatility in the near term – jumped as much as 3.48 per cent in the morning.
Analysts say negative global cues along with rising concerns about the coronavirus pandemic hurt market sentiment.
“There are concerns regarding new pandemic lockdowns in Europe. Also, reports about major financial institutions allegedly moving illicit funds raised concerns among investors. Also, the market has been ignoring negative news on macroeconomic numbers, rising COVID-19 cases in India, India-China standoff etc. So, yesterday it used the global news flow as an excuse to correct,” Prasanna Pathak, fund manager, Taurus Mutual Fund, Said.
Overall market breadth was extremely negative, as only 141 shares traded higher on the NSE against 1,570 that fell.
The Central Bureau of Investigation (CBI) on Monday registered a case against dairy company Kwality and its directors for allegedly cheating a consortium of banks of around ₹ 1,400 crore.
Equities elsewhere in Asia extended losses for a second straight day, as possible delays in expanded US stimulus and concerns about fresh pandemic lockdowns in Europe knocked investor sentiment. MSCI’s broadest index of Asia Pacific shares outside Japan was last seen trading 0.65 per cent lower, but Japan’s Nikkei 225 benchmark was up 0.18 per cent.