Sensex slips 871 points amid Covid-19 second wave scare

After plunging over 1,400 points earlier in the day, the 30-share BSE index pared some losses to finish at 49,159.32, down 870.51 points or 1.74 per cent. Similarly, the broader NSE Nifty sank 229.55 points or 1.54 per cent to 14,637.80.

Mumbai:Equity benchmark Sensex tanked 871 points on Monday, dragged by a selloff in financial stocks as spiking COVID-19 cases spooked investors and fanned concerns over economic recovery.

After plunging over 1,400 points earlier in the day, the 30-share BSE index pared some losses to finish at 49,159.32, down 870.51 points or 1.74 per cent. Similarly, the broader NSE Nifty sank 229.55 points or 1.54 per cent to 14,637.80.

Bajaj Finance was the top laggard in the Sensex pack, plunging around 6 per cent, followed by IndusInd Bank, SBI, M&M, Axis Bank, Bajaj Auto and ICICI Bank.

On the other hand, HCL Tech, TCS and Infosys were among the gainers.

"The market witnessed a huge sell-off today as India's second wave of COVID-19 is getting bigger than anticipated and is expected to ruin the pace of economic recovery. High valuation added further concern due to a possible downgrade in Q1FY22 earnings," said Vinod Nair, Head of Research at Geojit Financial Services.

Besides Covid-19, policy decision in the upcoming MPC announcement and Q4 earnings will define the market volatility in the coming days, he added.

India added 1,03,558 new infections on Monday hitting a record daily high since the the outbreak of the pandemic last year. According to the union health ministry the nationwide COVID-19 tally stands at nearly 1.26 crore.

The provisional numbers of key banks indicate a consolidating trend in terms of advances growth but encouraging performance on deposit and CASA front, he added.

Elsewhere in Asia, bourses in Seoul and Tokyo ended on a positive note. Markets in Shanghai, Hong Kong and Australia were closed for holidays.

Stock exchanges in Europe were also closed.

Meanwhile, the global oil benchmark Brent crude was trading 2.20 per cent lower at USD 63.43 per barrel.

(With PTI Inputs)