The Indian equity market declined nearly 6 per cent on Monday, tracking weak global cues after the latest flare up in US-China tensions. Further, yet another extension of the nation-wide lockdown also weighed on investor sentiment. Volatility index, India VIX, made an aggressive come-back after recent cool-off and surged over 28 per cent to 43.74 levels.
The S&P BSE Sensex tumbled 2,002 points or 5.94 per cent to 31,715 levels with 28 out of 30 constituents ending in the red. ICICI Bank (down 11 per cent) emerged as the biggest loser on the index, followed by Bajaj Finance (down 10 per cent), HDFC (down 10 per cent), and IndusInd Bank (down 9.6 per cent).
With today’s fall, investors’ wealth got eroded by around Rs 5.8 trillion, BSE data shows.
On the NSE, Nifty50 index ended at 9,293.50, down 566.40 points or 5.74 per cent.
Sectorally, barring Nifty Pharma, all the other sectoral indices on the NSE ended in the negative territory. Nifty Bank slid 1,791 points or over 8 per cent to 19,744 levels while Nifty Metal index declined 7.86 per cent to 1,714.
In the broader market, the S&P BSE MidCap index slumped 511 points or over 4 per cent to 11,502.59 while the S&P BSE SmallCap index lost over 3 per cent to 10,753.58.
Shares of breweries & distilleries companies were in focus and rallied up to 11 per cent on the BSE in an otherwise weak market after the government allowed the opening of liquor shops from today with certain condition. According to the Union Home Ministry notification, the liquor shops will be allowed to open in all the three zones, i.e red, orange and green. Liquor stores will not be allowed in containment zones across the country. READ MORE
Tech Mahindra declined around 8 per cent to Rs 502.45 apiece on the BSE after the company on Thursday posted lower-than-expected numbers for the quarter ended March 2020. READ MORE
Shares of Hindustan Unilever skid over 5 per cent to Rs 2,082 on the BSE after the consumer goods firm reported disappointing set of numbers for the quarter ended March 2020 (Q4FY20) on the back of the Covid-19 crisis. READ MORE
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.
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.
In commodities, oil prices fell, paring last week’s gains, on worries a global oil glut may persist amid slumping demand and US-China trade tensions.
US West Texas Intermediate (WTI) crude futures fell as low as $18.10 a barrel earlier in the session and were down $1.01, or 5.1 per cent, at $18.77 at the time of writing of this report. Brent crude futures were down 10 cents, or 0.4 per cent, at $26.34, after touching a low of $25.50.