Markets reverse gains on sharp rise in Covid cases

Mumbai: Benchmark indices Sensex and Nifty failed to cling on to day's highs and settled in the red on Tuesday as investors remained unsure about economic recovery amid mounting Covid-19 cases in the country. Shedding over 574 points from the day's high, the BSE Sensex settled 63.29 points or 0.21 per cent lower at 30,609.30. Similarly, NSE Nifty ended 10.20 points or 0.11 per cent down at 9,029.05. Bharti Airtel was the top loser in the Sensex pack, plunging around six per cent, followed by TCS, Bajaj Finance, Sun Pharma, Tech Mhindra, Infosys and Hero MotoCorp.

On the other hand, Titan, Ultratech Cement, IndusInd Bank, Nestle India and ITC were among the gainers. Sectorally, BSE telecom, teck, IT, healthcare and energy indices fell up to 4.64 per cent, while metals, consumer durables, utilities, power and auto index ended with gains. Broader BSE midcap and smallcap outperformed benchmarks, rallying up to 1.21 per cent. Sentiment in the Indian market remained volatile despite global markets trading positive.

"After opening up by more than 1 per cent, benchmark indices pared gains to close flat, with a negative bias. However, global market cues were positive, on the back of additional stimulus measures and slow reopening of economies globally," Vinod Nair, Head of Research at Geojit Financial Services, said. The unabated rise of infections continues in India, which throws up further uncertainties with regards to extension of lockdown measures, he added. The number of coronavirus cases in India climbed to 1,45,380 and the death toll touched 4,167, as per health ministry data.

Globally, the number of cases linked to the disease has crossed 54.95 lakh. Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended significantly higher. Stock exchanges in Europe too rallied up to 1.76 per cent in early deals. International oil benchmark Brent crude futures were trading 1.58 per cent higher at USD 36.09 per barrel. On the currency front, the rupee appreciated 29 paise to close at 75.66 against the US dollar.