Fresh coronavirus cases in India haunt markets
Mumbai: Market benchmark index Sensex wiped out its sharp gains in the last hour of trade to close down by 153 points on Monday as detection of fresh coronavirus cases in India spooked domestic investors.
Marking its seventh consecutive session of fall, the 30-share BSE barometer closed 153.27 points or 0.40 per cent lower at 38,144.02 as financial, steel and FMCG stocks tanked on growth concerns.
The broader Nifty of the NSE also shed more than 400 points from its day's high and closed lower by 69 points or 0.62 per cent at 11,132.75. Stocks had rallied in morning session due to value buying by investors following sharp losses in the previous sessions. Sensex rallied 786 points to touch the day's high of 39,083.17.
Nifty scaled 11,433 in day trade. However, the Union Health Ministry reporting two more positive cases of new coronavirus spooked domestic investors with Sensex crashing almost 1,300 points from the day's high to touch 37,785.99.
Nifty also plunged to a low of 11,036.25. "Detection of new cases of coronavirus in India has nipped the nascent pullback in the Indian equity market.
Despite the stability in the equity markets globally, the coronavirus scare led to fall of close to 400 points in Nifty from its intra-day high of 11,430 in matter for just an hour or so," Gaurav Dua, Sr VP, Head - Capital Market Strategy & Investments, Sharekhan by BNP Paribas, commented.
Sector-wise, BSE metal, oil and gas, basic materials, utilities, energy and telecom indices fell up to 2.05 per cent, while IT and teck indices ended in the green. Broader BSE midcap and smallcap indices fell up to 0.77 per cent.