Sensex drops 210 points on weak global cues, increasing Covid cases

After plunging 509 points during the day, the 30-share BSE index pared some losses to end 209.75 points, or 0.60 per cent, lower at 34,961.52. Likewise, the NSE Nifty settled 70.60 points, or 0.68 per cent, down at 10,312.40.

Mumbai:Equity benchmark Sensex on Monday dropped 210 points on selling mainly in banking and IT stocks as mounting coronavirus cases kept investors globally on edge.

After plunging 509 points during the day, the 30-share BSE index pared some losses to end 209.75 points, or 0.60 per cent, lower at 34,961.52.

Likewise, the NSE Nifty settled 70.60 points, or 0.68 per cent, down at 10,312.40.

Top gainers and losers

Axis Bank was the top loser in the Sensex pack, dropping around 5 per cent, followed by Tech Mahindra, SBI, L&T, IndusInd Bank, Infosys and NTPC.

On the other hand, HDFC Bank, HUL, Kotak Bank and Bharti Airtel were among the gainers.

Lockdowns pose threat

Market observers are of the opinion that the market sentiment would dip further as some State Governments like Telangana are considering re-imposing lockdown restrictions.

"Markets always look ahead and react to the news negatively. With another round of lockdown, if announced, markets will react negatively in the short term," said Subhash Yerneni, Investment Advisor.

He further advised that investments should be made on a long term basis.

"Besides the COVID, the ongoing tensions along the borders pose risk to the stock market. So investors should be very careful while trading in stocks for the short term. The strategy should be “Buy on Dips & Sell on the rise”. For long term investors, one should buy good companies slowly, if markets are falling," Subhash said.

According to Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi, market opened on a negative note tracking subdued trades in Asian markets as global coronavirus death toll crosses 5,00,000 as investors continued to monitor developments amid concerns that a surge in cases could impact the reopening of economies.

Further, geopolitical tensions like India-China border issue and US-China trade tiff also kept participants on edge, traders said.

Global Market

Bourses in Shanghai, Hong Kong, Japan and Seoul ended with significant losses, while those in Europe opened with mild gains.

Meanwhile, international oil benchmark Brent crude futures fell 0.34 per cent to USD 40.79 per barrel.

On the currency front, the rupee settled 7 paise higher at 75.58 against the US dollar.

COVID cases

The number of cases around the world linked to the disease has crossed 1 crore and the death toll has topped 5 lakh.

In India, the number of coronavirus infections rose to 5.48 lakh, while the death toll stood at 16,475, according to the health ministry.

(With PTI Inputs)