Lockdown fears spook markets, Sensex falls 3.5%

Fears of the speedy unfold of COVID-19 and its potential affect on the economic system drove benchmark inventory indices down by about three.5% on Monday. The droop was led by a meltdown in banking and finance shares.The S&P BSE Sensex plunged 1,707.94 or three.44% to 47,883.38. All of the 30 shares of the Sensex aside from Dr. Reddy’s Laboratories closed within the crimson. The highest three losers included IndusInd Financial institution (down eight.6%), Bajaj Finance (7.39%) and SBI (6.87%). The NSE Nifty 50 too plunged 524.05 factors or three.53% to 14,310.80. High gainers had been Dr. Reddy’s and Cipla.Recording its sixth straight session of loss, the rupee plunged to an nearly 9-month low, depreciating 32 paise to 75.05 in opposition to the U.S. greenback on the interbank overseas trade, sellers mentioned.“Rising instances of COVID-19 and concern of possible lockdowns… led to a sell-off in our [stock] markets, which resulted in an enormous underperformance in comparison with international friends,” mentioned Ruchit Jain, senior analyst (Technical and Derivatives), Angel Broking.“We anticipate the rupee to weaken versus the USD as produce other [emerging market] currencies, and we anticipate that for the following six months, the Indian economic system could progress in suits and begins; the comparatively sluggish progress of vaccination in India means that we’ll be slower to recuperate in comparison with the U.S.”, mentioned R. Venkataraman, MD, IIFL Securities.

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