Further imposition of lockdowns and all-time high Covid-19 cases have dragged the market to a monthly low. This is expected to impact economic growth in the first quarter of FY22 by a wider margin than anticipated earlier.
The 30-share pack Sensex plunged 1,707.94 points or 3.44 per cent to close at 47,883.38. Its broader peer NSE Nifty tanked 524.05 points or 3.53 per cent to settle at 14,310.80.
Investors’ wealth declined by Rs 8.69 lakh crore as the total market capitalisation of BSE-listed companies came down to Rs 200.94 lakh crore.
“Implications to the banking and discretionary sectors are presumed to be the highest, drifting the market to defensives like IT, pharma and FMCG. This trend may happen for a couple of trading weeks, down a few weeks Covid cases are likely to reduce, bringing growth back,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance
Volatility barometer India VIX spikes 16% to 23
Dr Reddy’s Labs surges 7% after Sputnik V vaccine approval
Tata Power slumps 11% after co terminates $2 billion deal
PSU banks tumble on asset quality concerns
Pharma stocks show some resilience on rising Covid cases, declining rupee
