Mumbai: The domestic equity market started May on a sour note as Sensex and Nifty cracked 6 per cent, joining the rout in world markets, as a fresh spat between the US and China triggered a flight to safety.

Key facts

• The 30-share Sensex tanked 5.94 per cent or 2002 points to close at 31,715, while the 50-share Nifty dropped 5.74 per cent or 566 points to settle at 9,294.

• Around Rs 5.8 lakh crore of investor wealth was eroded on the BSE.

• Asian and European stock markets fell as a spat between top US officials and China over the origin of the coronavirus fuelled fears of a new trade war, derailing a rebound in global markets, Reuters reported.

• MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.5 per cent, while the pan-European STOXX 600 fell 2.3 per cent in a downbeat start to the month.

• Fears of supply-side disruptions bothered the market with the third round of lockdown in place. The lockdown will now be in force up to May 17 with some ease in restrictions in certain areas.

Key market statistics

• The bears were in charge on Dalal Street today with more than three shares declining for every share that advanced on the BSE.

• BSE Midcap and Smallcap indices fell 4.25 per cent and 3.14 per cent, respectively.

• Volatility was back in vogue as India VIX soared 28.70 per cent to 43.7425.

• All the sectoral indices on BSE, barring healthcare and telecom, closed deep in the red. BSE Finance index and BSE Bankex were the top sectoral losers as they tumbled 8.36 per cent and 8.25 per cent, respectively.

• L&T Finance and JM Financial were the top losers in the BSE Finance pack and declined 10.98 per cent and 10.79 per cent, respectively. Among lenders, ICICI Bank and Federal Bank shed10.45 per cent and 9.73 per cent, respectively.

• Only two Sensex stocks – Bharti Airtel and Sun Pharmaceutical - closed higher. Lenders contributed the most to the benchmark’s losses.

Guest contributor and other agencies

What are the experts saying?


What to watch out for?

• Investors await the announcement of the second round of stimulus measures to boost the ailing economy in light of the extended lockdown.

• March quarter report cards of companies are closely tracked for cues on impact from Covid-19.