Sensex falls 1,069 points, Nifty crashes below 9,000 as economic stimulus fails to cheer investors
The economic package announced by the government over the past week failed to cheer the investors despite the positive global markets.
Indian equity markets plunged sharply on Monday as the economic package announced by the government over the past week failed to cheer the investors despite the positive global markets.
While Sensex was down 1068.75 points or -3.44% to close at 30,028.98, NSE’s Nifty fell 313.60 points or -3.43% to end at 8,823.25.
All of the sectors ended in red except IT which was up 0.9% and Pharma which ended flat. Banks (-6.7%), Financial Services (-6.6%) and Auto (-5.5%) largely dragged the market.
In the Sensex pack, IndusInd Bank was the top laggard, cracking around 10%, followed by HDFC, Maruti Suzuki, Axis Bank and UltraTech Cement. TCS and Infosys closed with gains.
IndusInd Bank and ZEEL were the top losers in Nifty pack and lost over 9.5%, followed by Eicher Motors, BPCL, Ultra Cement, Maruti and HDFC. Cipla, TCS, Infratel, Infosys and HCL were top gainers.
Experts said despite the positive global markets, the market sentiments in the domestic market were dampened on the back of disappointment from the economic package of the government, and extended nationwide lockdown for the fourth time to May 31.
“Investors feel that the package may fail to revive the economy in near-term as there was a lack of enough measures to boost immediate demand and consumption. Banks and financial services were the most hit as there is a fear of rising NPAs. Further the asset quality may deteriorate as the government has decided to suspend filing of fresh insolvency cases under the IBC for the next 12 months,” Siddhartha Khemka of Motilal Oswal Financial Services said.
“For now the market will focus on the global cues and the quarterly results as the major event of stimulus announcement is now behind us. There is a fear of a second wave of pandemic spread. Further the earnings season and the management commentaries so far suggest more volatility and disruption in earnings ahead. In the near-term, we expect the market direction to depend upon the spread and intensity of COVID cases, development around Covid vaccine and the global developments. Investors would also track the developments around the trade tensions between US and China,” he added.
The government on Sunday announced extension of nationwide lockdown to check the spread of coronavirus till May 31. The number of COVID-19 cases in India rose to 96,169 while the death toll has jumped to 3,029.