Sensex crashes over 1,300 points in early trade
Equity benchmark Sensex crashed over 1,300 points in early trade on Monday, tracking massive across-the-board sell-off as the major spike in COVID-19 cases in the country spooked investor sentiment. The 30-share BSE index was trading 1,318.21 points or 2.70 percent lower at 47,513.82. Similarly, the broader NSE Nifty tanked 394.90 points or 2.70 percent to 14,222.95.
Who lost the most in the Sensex pack?
All Sensex components were in the red. Bajaj Auto was the top loser in the Sensex pack, dropping over 5 percent, followed by IndusInd Bank, SBI, ICICI Bank, Bajaj Finance, and Axis Bank. In the previous session, Sensex had ended 28.35 points or 0.06 percent higher at 48,832.03, and Nifty rose 36.40 points or 0.25 percent to 14,617.85.
FIIs' were the net buyers in the market
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs. 437.51 crore on Friday, according to provisional exchange data. "The health crisis that India is going through and localized lockdowns and restrictions on economic activity warrant a market correction," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Rise in COVID-19 cases to affect the target growth rate
The targets of around 11 percent GDP growth and above 30 percent earnings growth for FY 22 that the market had assumed pre-second wave are likely to fall short. The steady rise in COVID-19 positive cases and the steady decline in recovery rates are areas of serious concern. Active COVID-19 cases in India stand at 19,29,329, up from 18,01,316 cases registered on Sunday.
Brent crude was trading at $66.44 per barrel
The negativity may not fully reflect since the global clues are positive. The recovery in global growth led by the US and China augurs well for markets globally. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul, and Tokyo were trading on a positive note in mid-session deals. Meanwhile, international oil benchmark Brent crude was trading 0.49 percent lower at $66.44 per barrel.