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Stock Market Updates: ONGC, GAIL, Indian Oil were the top Nifty losers.
Domestic stock markets tumbled more than 4 per cent on Monday tracking a selloff across global equities over fears of a new coronavirus strain that was shutting much of the United Kingdom. The Sensex index dropped 2,037.61 points, or 4.34 per cent, to 44,923.08 at the weakest level in late afternoon deals, and the broader Nifty benchmark tanked to as low as 13,131.45, falling 629.1 points, or 4.57 per cent, from its previous close. A selloff across sectors — led by banking, financial services, automobile and metal shares — dragged the markets lower.
Here are 10 things to know:
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The Sensex plunged 1,407 points or 3 per cent to close at 45,553.96 and Nifty 50 index dropped 432 points or 3.14 per cent too settle at 13,328. (Track Sensex, Nifty Here)
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All of the 50 shares in the Nifty basket suffered losses. ONGC, Tata Motors, GAIL, Hindalco, Indian Oil, IndusInd Bank and Bharat Petroleum — trading between 6.97 per cent and 8.94 per cent lower — were the worst hit. (Also Read: Stocks To Watch)
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Reliance Industries, ICICI Bank, HDFC Bank and HDFC were the biggest drags on Sensex. The four accounted for more than 500 points in the loss in the 30-scrip index.
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Analysts say the rally in the domestic markets was driven by liquidity which is why any negative news warranted a deep correction.
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“It is a bit too early to say anything, but there could be more of this healthy correction in the coming days. The markets are highly leveraged and lack of follow-up buying by foreign institutional investors ahead of Christmas holidays is making the markets fall of their own weight,” AK Prabhakar, head of research at IDBI Capital Markets, told NDTV. “However, there will always be investors waiting to buy in a bull market, so any major correction can only happen after Budget,” he added.
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The NSE’s India VIX index — which measures the markets’ expectation of volatility in the near term — surged as much as 9.77 per cent in late afternoon deals.
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Domestic equity benchmarks have surged more than 80 per cent from lows hit in March, powered by record inflows from foreign institutional investors (FIIs), progress on COVID-19 vaccines globally and signs of a domestic economic recovery.
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Equity markets in other parts of Asia faltered on Monday, despite news a deal had finally been struck on a long-awaited US stimulus bill. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent after hitting a string of record peaks last week. Japan’s Nikkei reversed early gains to be down 0.6 per cent, off its highest since April 1991.
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European shares started the day sharply lower, with the United Kingdom’s FTSE 100 benchmark down 0.93 per cent at the last count. Britain Prime Minister Boris Johnson will chair an emergency response meeting on Monday to discuss international travel and the flow of freight in and out of the country.
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The overall market breadth was extremely negative as 2,430 shares ended lower while 594 closed higher on the BSE.
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