Sensex dives 414 points amid concerns over rising COVID cases

Mumbai: Benchmark Sensex on Tuesday tumbled 414 points to settle near the day's lowest level due to a broad-based selloff as uncertainty about economic revival amid mounting COVID cases in the country hung heavy on investor minds.

Dropping 855 points from the day's high, the 30-share BSE Sensex closed 413.89 points or 1.20 per cent lower at 33,956.69. Likewise, the NSE Nifty ended 120.80 points or 1.19 per cent down at 10,046.65. In contrast to Indian equities, global stocks were broadly upbeat as the lifting of lockdowns in many countries raised investor hopes of a relatively quick global economic recovery. On the Sensex chart, ICICI Bank was the top laggard, falling around 3 per cent, followed by Bharti Airtel, HDFC Bank, Bajaj Finance, Kotak Bank and Axis Bank. On the other hand, IndusInd Bank, Sun Pharma, M&M and HDFC were among the gainers.

Of the 30 shares of Sensex, 21 closed in the red and 9 in the green. Sectorally, BSE telecom, bankex, energy, oil and gas, consumer durables and finance indices fell up to 3.06 per cent; while healthcare, realty and FMCG indices ended with gains. Broader midcap and smallcap indices fell up to 1 per cent. Analysts believe domestic market succumbed to profit-booking at higher levels as concerns over rising number of COVID-19 cases in the country outweighed the optimism over reopening of the economy. The number of infections in India spiked to 2,66,598, while the death toll rose to 7,466, according to the health ministry.

The number of cases around the world linked to the disease has crossed 71.19 lakh and the death toll has topped 4.06 lakh. Domestic markets remained volatile and was subjected to profit-booking amid mixed global cues after the World Bank estimated that global gross domestic product will shrink by 5.2 per cent in 2020, the deepest recession since a 13.8 per cent global contraction in 1945-46 at the end of World War II," Paras Bothra, President of Equity Research, Ashika Stock Broking, said. In the global market, Shanghai, Hong Kong and Seoul bourses ended with gains. Japan settled in the red. Stock exchanges in Europe were trading with significant losses in early deals.

The big rally in global equity markets came last week after US jobs data showed a surprise dip in the unemployment rate. International oil benchmark Brent crude futures fell 1.69 per cent to USD 40.11 per barrel. On the currency front, the rupee closed 6 paise lower at 75.61 against the US dollar.