Sensex snaps 10-session rally, crashes 1,066 pts
The 30-share BSE index plummeted 1,066.33 points or 2.61 per cent to end at 39,728.41
Mumbai: Snapping its 10-session winning run, equity benchmark Sensex plunged 1,066.33 points on Thursday as investors pressed the exit button amid a massive selloff in global markets. The 30-share BSE index plummeted 1,066.33 points or 2.61 per cent to end at 39,728.41. The broader NSE Nifty crashed 290.70 points or 2.43 per cent to 11,680.35.
Global equities cratered as hopes faded of a pre-election stimulus deal in the US, while multiple countries in Europe braced for a second round of lockdowns to curb rising Covid-19 cases, jeopardising the already shaky economic recovery. Back home, market participants were also eager to book profits after the recent rally amid already stretched valuations, traders said.
Barring Asian Paints, which inched up 0.32 per cent, all Sensex constituents closed in the red. Bajaj Finance was the top loser, tumbling 4.68 per cent, followed by Tech Mahindra, IndusInd Bank, ICICI Bank, SBI, Reliance Industries, Bharti Airtel and HCL Tech. Investors lost Rs 3.25 lakh crore in Thursday’s session as the total market capitalisation of BSE-listed companies fell to Rs 157.31 lakh crore.
“The market had moved-up in expectation of a big stimulus, but the desired fiscal package was not announced in India and a delay of it in US and Euro has changed the trend. At the same time, the pace of economic recovery is under stress because of a resurgence of high rates of Covid infections. The margin of safety is low given premium prices and slowdown in economic recovery. The trend going forward will depend on the supportive measures announced in context to stimulus and commentary of Q2 results,” said Vinod Nair, Head of Research at Geojit Financial Services.
All sectoral indices closed lower, with BSE telecom, bankex, energy, finance, teck and IT indices plunging as much as 3.54 per cent. Broader BSE midcap and smallcap indices nosedived up to 1.75 per cent. In rest of Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended up to 2 per cent lower. Stock exchanges in the Europe slumped up to 3 per cent in early deals.
Meanwhile, international oil benchmark Brent crude was trading 2.17 per cent lower at $42.38 per barrel. In the forex market, the rupee pared its initial gains and settled 5 paise lower at 73.36 against the US dollar.
