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Varanasi
Thursday, December 2, 2021

Covid resurgence, partial lockdown dent equities; bank stocks plunge

Resurgence of domestic Covid cases as well as high re-imposition of partial lockdown measures dragged Bharat’s equity indices deep into the red on Monday.

Accordingly, market opened on a flat-to-negative note as rising corona cases subdued investor’s sentiments.

Globally, Asian markets ended mostly higher on Monday amid thin holiday trade across the region, following positive cues from US markets. Besides, European markets were largely shut on account of Easter holidays.

On the domestic front, markets opened gap-down and witnessed selling pressure throughout the day after the Maharashtra government announced new restrictions.

Among sectors, banks, financials, realty, media, auto, FMCG indices fell the most while metals and IT ended in the positive.

Consequently, the S&P BSE Sensex closed 870.51 points, or 1.74 per cent lower to 49,159.32 points from the previous close.

The NSE Nifty50 on the National Stock Exchange ended the trade session at 14,637.80, down by 229.55 points, or 1.54 per cent, from its previous close.

“Bharatiya benchmark equity indices began the new trading week on April 5 on a negative note, as rising coronavirus cases kept a check on investor sentiment,” said Deepak Jasani- Head of Retail Research at HDFC Securities.

“Severely adverse advance decline ratio suggests broad nervousness in the markets. RBI’s credit policy and Q4 earnings numbers create some added uncertainty for traders when Covid cases are on the rise.”

According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Spurt in volatility from lower levels is keeping the market volatile with selling pressure at higher zones. Going ahead, Bharat’s markets are likely to track global cues after the recent announcement of infra investment plan by US president. Further investors would now focus on upcoming quarterly results which would kick start from mid-April.”

“Domestically, concerns over the fast spreading second wave of Covid in Bharat continues to remain. Economic activities might take a hit due to partial lockdowns and markets would react accordingly in coming weeks.”

In addition, Vinod Nair, Head of Research at Geojit Financial Services: “The market witnessed a huge sell-off today as Bharat’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. A policy decision in the upcoming MPC announcement and Q4 earnings will define the market volatility in the coming days.”

(The story has been published via a syndicated feed with minor edits to conform to HinduPost style-guide.)


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