The Nifty and the Sensex opened the day on a negative note as rising coronavirus cases continues to worry investors.
Join us as we follow the top business news through the day.
Rupee slumps 52 paise to 74.87 against US dollar in early trade
The rupee bears the brunt of the stock market fall.
PTI reports: "The Indian rupee slumped 52 paise to 74.87 against the US dollar in opening trade on Monday, amid fears that a rapid resurgence of COVID-19 cases in the country could disrupt economic recovery.
Besides, heavy selloff in domestic equities also weighed on investor sentiment.
At the interbank forex market, the domestic unit opened at 74.80 against the US dollar, then fell further to 74.87, registering a fall of 52 paise over its previous close.
On Friday, the rupee had settled at 74.35 against the American currency.
The Indian rupee started on a weaker note against the US dollar after another surge in coronavirus infections over the weekend increased the risk of more broadbased lockdowns, Reliance Securities said in a research note.
India's total tally of COVID-19 cases crossed 1.50 crore with a record single-day rise of 2,73,810 new coronavirus infections, while the active cases surpassed the 19-lakh mark, according to the Union Health Ministry data updated on Monday.
Registering a steady increase for the 40th day in a row, the active cases have increased to 19,29,329 comprising 12.81 per cent of the total infections, while the national COVID-19 recovery rate has dropped to 86 per cent.
Meanwhile, Asian currencies were mostly weaker this Monday and could weigh on sentiments, the Reliance Securities' note said adding that "the RBI could be present to curb volatility".
In the domestic equity market, the 30-share BSE benchmark Sensex was trading 1,189.83 points lower at 47,642.20, and the broader NSE Nifty was down 340.60 points at 14,277.25.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 437.51 crore on Friday, according to exchange data.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.10 per cent to 91.64.
Brent crude futures, the global oil benchmark, fell 0.37 per cent to USD 66.52 per barrel."
FPIs pull out ₹4,615 crore from Indian markets in April so far
Foreign portfolio investors (FPIs) have pulled out a net ₹4,615 crore from Indian markets in April so far amid sharp escalation in COVID-19 cases and the consequent restrictions imposed by various states, unnerving overseas investors.
According to the depositories data, overseas investors pulled out ₹4,643 crore from equities but invested ₹28 crore in the debt segment.
This translated into a total net withdrawal of ₹Rs 4,615 crore during April 1-16.
Previously, FPIs invested ₹17,304 crore in March, ₹23,663 crore in February and ₹14,649 crore in January.
"Various states have imposed restrictions of varying degrees to curb the sharp rise in COVID-19 cases. The fear of rising coronavirus cases and currency depreciation has led to FPI outflows in this month to date," Rusmik Oza, executive vice-president and head (fundamental research) at Kotak Securities, said.
Oil drops as surging COVID-19 infections stoke demand concerns
The virus continues to be oil's biggest nemesis at the moment.
Reuters reports: "Oil prices were lower on Monday as rising coronavirus infections in India and other countries prompted concerns that stronger measures to contain the pandemic will hit economic activity, along with demand for commodities such as crude.
Brent crude was down 23 cents, or 0.3%, at $66.54 a barrel by 0426 GMT, after rising 6% last week. U.S. oil was down 27 cents, or 0.2%, at $62.96 a barrel, having gained 6.4% last week.
"The progress of vaccination drives in the developed markets can be seen in road traffic levels, but resurging case numbers have reversed the recovery in the emerging countries," such as India and Brazil, said ANZ Research in a report on Monday.
India reported a record rise in coronavirus infections of 273,810 on Monday, increasing overall cases to just over 15 million, making the country the second-worst affected after the United States, which has reported more than 31 million infections. India's deaths from COVID-19 rose by a record 1,619 to nearly 180,000.
Hong Kong will suspend flights from India, Pakistan and the Philippines from April 20 due to imported coronavirus infections, authorities said in a statement late on Sunday.
Japanese companies believe the world's third-largest economy will experience a fourth round of coronavirus infections, with many bracing for a further blow to business, a Reuters monthly poll showed.
Japan has had far fewer COVID-19 cases than many other major economies, but concerns about a new wave of infections are rising fast, according to their responses in the poll.
A slower rollout of vaccinations compared with other Group of Seven advanced countries and the lack of a sense of crisis among the public will trigger a new wave of infections, some companies wrote in the poll.
In the United States energy companies added oil and natural gas rigs for a fifth consecutive week for the first time since February as higher oil prices this year encouraged drillers to return to the wellpad."
Indian shares sink on record surge in daily COVID-19 cases
Another poor start to the day for stocks.
Reuters reports: "Indian shares dropped on Monday as the country struggled to contain an unrelenting surge in coronavirus infections, fuelling fears of harsher restrictions and more economic pain.
The NSE Nifty 50 index was down 2.4% at 14,264.10 by 0345 GMT, while the S&P BSE Sensex also declined 2.4% at 47,660.55.
India on Monday reported its tenth record daily increase in COVID-19 cases in eleven days, with the capital city of New Delhi — currently under a weekend curfew — reporting a shortage in critical-care beds.
The state of Maharashtra, home to financial hub Mumbai, has already imposed stringent curbs, effective April 15.
State owned banks led the declines among sectors as it dropped over 5% at open, on track for its third straight session of losses.
Private banks fell over 4%, with lending heavyweights HDFC Bank and ICICI Bank leading the losses on the benchmark index. Metal stocks lost 3.3%."
Are you an investor doing fundamental analysis?
Many individuals we talk to seem to consider themselves as investors and insist that they do fundamental analysis for stock picking. So, we decided to address these two topics in this column. Specifically, we discuss the difference between traders and investors and also show why most individuals may not be actually doing fundamental analysis.
It is generally argued that a trader has a short-term outlook whereas an investor has a long-term outlook. But how relevant is long term? Suppose your investments are down 20%. Of what use is an argument that equity generates good returns over the long-term if you need the money to fund your child’s college education three years hence? Whether you invest to achieve a life goal or to capture short-term movements in the market, your primary source of returns from equity is capital appreciation. That means you are exposed to market risk. Therefore, you are a trader, not an investor.