Sensex falls 242 points on jump in coronavirus cases; financials top drags

Mumbai: Financials dragged the benchmark equity indices lower on Thursday as fears of rise in defaults bothered investors in light of the extended lockdown and delayed recovery in the wake of Covid-19 pandemic.

A surge in coronavirus cases in the country and weak macro data also weighed heavily on investor sentiment. India's COVID-19 count crossed 52,000 on Thursday, with 3,561 coronavirus cases detected in last 24 hours. The death toll in the country increased to 1,783. India recorded 89 deaths in last 24 hours, one of the highest since the coronavirus pandemic.

The domestic market tried paring losses in the morning session but failed, succumbing to the selling pressure in banking and financial stocks.

Lenders contributed the most to the losses in 30-share Sensex. Top private lender HDFC Bank shed 2.26 per cent while rivals Kotak Mahindra Bank and ICICI Bank dropped 3.69 per cent and 1.36 per cent, respectively. Mortgage lender HDFC declined 1.68 per cent.

Agencies

Key facts

• BSE barometer Sensex dropped 0.76 per cent or 242 points to 31,443, while the 50-share Nifty shed 0.78 per cent or 72 points to close at 9,199.

• World markets were mixed. Asian shares pared early losses and European shares started higher after Chinese exports proved far stronger than even bulls had imagined, Reuters reported.

• MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.4 per cent, while the pan-European STOXX 600 rose 0.6 per cent.

Key market statistics

• The market breadth was tilted in favour of the bears, with losers outpacing gainers in the ratio of 1.2:1 on the BSE.

• Volatility index India VIX fell for the fourth straight session, down 3.68 per cent to 39.7275.

• Broader market outperformed benchmark but they too ended in the red. BSE mid and smallcap indices dropped 0.53 per cent and 0.14 per cent, respectively.

• BSE Power index was the biggest sectoral loser as it dropped 2.47 per cent. KEC International and NTPC shed 4.49 per cent each.

• BSE Utilities index lost 2.27 per cent. Reliance Infrastructure and Reliance Power were the top sectoral losers, down 4.97 per cent and 4.85 per cent, respectively.

• A total of 25 Sensex stocks closed in the red with Oil explorer Oil & Natural Gas Corporation as its biggest loser, down 4.54 per cent. Telecom major Bharti Airtel shed 3.34 per cent.

• Lender IndusInd Bank and vehicle maker Mahindra & Mahindra were the top gainers in the 30-pack index and advanced 6.58 per cent and 3.45 per cent, respectively.

• GlaxoSmithKline Plc (GSK) on Thursday said it sold its 5.7 per cent stake in fast moving consumer goods major, Hindustan Unilever Ltd (HUL), for Rs 25,480 crore, according to a stock exchange filing in London. Following this development, HUL shares closed 0.86 per cent lower at Rs 1,992.50.

What do the experts say?

What to watch out for?

• The extent of the spread of coronavirus infections in the country will be closely monitored after the huge spike in the last one day.

• The second stimulus package from the government to help companies tide over the coronavirus crisis is keenly awaited.