With the Second Covid-19 Wave Hitting Hard, Are Indian Markets Again Heading for a Massive Low?

Equity benchmarks wilted under selling pressure this week as the steady stream of grim news surrounding the Covid-19 crisis in the country sapped risk appetite and raised concerns over the economic recovery forecasts.

Markets lost 1.9 per cent for the week, the worst weekly fall since 28 February 2021. In April so far, both benchmark indices Sensex and Nifty are down around 3 per cent and are poised to see the worst monthly fall since May 2020.

Foreign institutional investors (FIIs) continue to sell Indian equities, dumping USD 934.27 million worth of shares in this month so far.

Also read: Coronavirus News Live Updates

A depreciating rupee, which slumped below the 75-mark versus the US dollar, and a negative trend in global equities added to the gloom.

After a volatile session, the 30-share BSE Sensex ended 202.22 points or 0.42 per cent lower at 47,878.45.

Similarly, the broader NSE Nifty dropped 64.80 points or 0.45 per cent to close at 14,341.35.

M&M was the top loser among the Sensex constituents, skidding 2.63 per cent, followed by Dr Reddy’s, Tech Mahindra, HUL, Bharti Airtel, ICICI Bank, Titan and Infosys.

On the other hand, PowerGrid, NTPC, Axis Bank, IndusInd Bank, HDFC and Bajaj Finserv were among the gainers, climbing up to 3.51 per cent.

During the holiday-truncated week, the Sensex slumped 953.58 points or 1.95 per cent, while the Nifty tanked 276.50 points or 1.89 per cent.

Sectorally, BSE telecom, realty, tech, FMCG, IT and basic materials indices lost as much as 1.33 per cent, while power, utilities and finance ended with gains.

In the broader markets, the BSE midcap and smallcap indices outperformed the benchmarks, rising up to 0.51 per cent.

On the global markets front, Wall Street tanked after US President Joe Biden unveiled a plan to hike taxes for the wealthiest Americans, including almost doubling the capital gains tax.

In Asia, bourses in Shanghai, Hong Kong and Seoul ended on a positive note, while Tokyo was in the red.

Stock exchanges in Europe were trading with losses in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 0.06 per cent lower at USD 65.36 per barrel.

Read all the Latest News, Breaking News and Coronavirus News here. Follow us on Facebook, Twitter and Telegram.