Losses in banking and financial services stocks weighed on the markets
Domestic stock markets started the week on a negative note amid a selloff in global equities amid fears about a second wave of COVID-19 infections. The S&P BSE Sensex index fell as much as 2.54 per cent – or 857.15 points – to hit 32,923.74 during the session, after starting the day down 110.34 points at 33,670.55. The broader NSE Nifty 50 benchmark slid to as low as 9,726.35, having opened weaker at 9,919.35 compared to its previous close of 9,972.90. Sharp losses in banking and financial services stocks weighed on the markets.
The Sensex ended 552.09 points – or 1.63 per cent – lower at 33,228.80, and the Nifty settled at 9,813.70, down 159.20 points – or 1.60 per cent – from its previous close.
In the 50-scrip Nifty basket, 42 shares finijshed the session in the negative territory. Top percentage losers were IndusInd Bank, Axis Bank, Tata Motors, Bajaj Finance and ICICI Bank, ending between 3.79 per cent and 7.20 per cent lower. On the other hand, GAIL, Wipro, HCL Tech and Reliance Industries were the top Nifty gainers, closing up 3.68 per cent, 2.60 per cent, 1.49 per cent adn 1.48 per cent respectively.
HDFC Bank (settling 3.28 per cent lower), ICICI Bank (3.88 per cent) and HDFC (2.25 per cent) alone accounted for a fall of more than 250 points in the Sensex.
| Stock | Price Movement | Contribution To Sensex (Points) |
|---|---|---|
| HDFC Bank | -3.28% | -127.7 |
| ICICI Bank | -3.88% | -80.12 |
| HDFC | -2.25% | -64.93 |
| ITC | -3.51% | -54.23 |
| Axis Bank | -4.55% | -39.63 |
The number of COVID-19 cases in India had surged well past 3,32,400 by Monday, with more than 9,500 deaths, making it the world’s fourth-worst affected country.
“Global shares sank on Monday as resurgence of coronavirus cases in China and other countries deepened pessimism over prospects for a global economic recovery,” said Deepak Jasani, head-retail research, HDFC Securities. “Stocks were volatile as investors re-evaluate their expectations for economic growth, which many skeptics have been saying were overly optimistic,” he said.
Equities in other Asian markets started the day on the backfoot while oil prices slipped as fears of a second wave of coronavirus infections in China sent investors scurrying for safe-havens.
While MSCI’s broadest index of Asia Pacific shares outside Japan fell 2.23 per cent, Japan’s Nikkei 225 benchmark declined 3.47 per cent for the day. China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s KOSPI indices moved 1.02 per cent, 2.16 per cent and 4.76 per cent lower respectively.
Beijing reported a spike in new coronavirus cases in recent days, all linked to a major wholesale food market, fuelling concerns about a resurgence of the disease.
The E-Mini S&P 500 futures were down 1.92 per cent in early Asian trade, indicating a lower start for US equity markets on Monday.
European shares started the day on a negative note. While the United Kingdom’s FTSE and Germany’s DAX benchmark indices were each last seen trading 0.93 per cent lower, France’s CAC barometer was down 0.84 per cent.
Back home, government data on Friday showed wholesale deflation – or negative inflation – came in at 3.21 per cent In May. Last Friday, the government had put off the release of headline consumer price inflation numbers for April and May due to inadequate data collection.
(With inputs from agencies)
