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Sensex tanks 1,066 points over weak global cues

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Investors in India on Thursday lost over Rs 2.7 lakh crore within a few hours as the Sensex tanked by over 1,000 points. The downfall almost wiped out most the gains achieved during the past 10 days when the markets witnessed consecutive gains.

The decline in the stock market is attributed to the selling pressure on Thursday amid profit booking in stocks that have outperformed, which includes Reliance Industries and a host of information technology (IT) stocks. The decline is also attributed to the weak global cues.

The S&P BSE Sensex plunged 1,066 points, or 2.61 per cent to end the day at 39,728 levels while NSE’s Nifty settled at 11,680, down 291 points, or 2.43 per cent. India Vix, the volatility index, jumped over 9 per cent to 22.05 levels.

Notably, 29 out of 30 constituents of BSE Sensex declined. In fact, Asian Paints was the only stock in the index that ended in the green, with a surge of 0.3 per cent.

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In the broader market, the S&P BSE MidCap index slipped 1.75 per cent and the S&P BSE SmallCap index fell 1.45 per cent.

Global markets decline amid coronavirus chaos

Global shares fell on Thursday as governments across Europe tightened restrictions to battle an accelerating second wave of COVID-19 infections, dampening the prospects for economic recovery.

Many countries, particularly those in Europe, have witnessed a fresh wave of coronavirus infections. Several European countries that had returned to near-normalcy are going back to lockdown.

The return of lockdown in economic powerhouse countries such as France, Germany, Italy, the UK and other parts of Europe translates into severe disruption of business across the globe.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.6 per cent while Japan’s Nikkei dropped 0.5 per cent.

Oil prices also fell as the renewed surge in the virus in large parts of the world underpinned concerns about economic activity.

 

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