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Doomsday dances on D-Street

Doomsday dances on D-Street
Highlights

In its worst-ever crash, Sensex plunges 3,935 pts while Nifty falls 1,135 points; Investors lose Rs 14.22 lakh crores

Mumbai: The Indian stock market suffered worst-ever single-day crash on Monday, with the benchmark indices plunging as much as 13.15 per cent, as panicked investors remained in sell-off mode amid lockdowns in several states in the country due to mounting coronavirus cases.

The BSE benchmark Sensex plummeted 3,935 points or 13. 15 per cent to close at 25,981.24; while the NSE barometer Nifty cracked 1,135.20 points or 12.98 per cent to settle at 7,610.25.

In the very first hour of trade on Monday, trading on the BSE and the NSE had to be halted after the benchmark indices – Sensex and Nifty – hit the 10 per cent lower circuit breaker.

As trading resumed after a 45-minute freeze, losses widened on bourses due to unabated sell-offs across sectors. Global stocks too roiled after nations across the world announced lockdowns in an effort to mitigate the spread of Covid-19 pandemic, spiking fears of a mammoth global recession.

On the Sensex chart, Axis Bank was the top loser, tanking over 28 per cent, followed by Bajaj Finance, IndusInd Bank, ICICI Bank, Maruti and L&T. All sectoral indices ended significantly lower, with BSE bankex, finance, capital goods, basic materials, industrials and auto indices plunging up to 16.82 per cent.

Broader midcap and smallcap indices tanked over 12 per cent each.

"With the spread of Covid-19 continuing unabated and the fears of global recession increasing, the Indian markets crashed.

The markets closed much lower in percentage terms compared to the Asian and European markets, which indicated increased uncertainty regarding the spread of the virus in India after the government indicated that the country was in a crucial phase in its fight against the virus," Vinod Nair, Head of Research at Geojit Financial Services, said.

Further measures and lockdowns are expected after manufacturing companies indicated that they would shut down their facilities, which would have an overall impact on business activity and market confidence, he added.

The central and state governments on Sunday announced lockdown in about 80 districts in the country where at least one confirmed case of COVID-19 was reported.

Meanwhile, S&P Global Ratings on Monday cut its estimate for India's GDP growth for the next fiscal to 5.2 per cent from its earlier estimate of 6.5 per cent, which further worsened the market sentiment that has been already reeling under the coronavirus spread.

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