Markets crack 2.8% as daily covid cases hit record high

Sensex fell nearly 2.8%. (REUTERS)Premium
Sensex fell nearly 2.8%. (REUTERS)
 1 min read . Updated: 19 Apr 2021, 09:58 AM IST Ravindra N. Sonavane

Mumbai: Indian equity markets on Monday slumped around 2.8% as daily covid infections hit fresh highs triggering concerns over India's economy.

The benchmark Sensex fell nearly 2.8% to 47,522 points, while Nifty declined 2.6% to 14,239 points.

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In the last 24 hours, 1,619 covid-related deaths were reported in the country taking the death toll to 1,78,769. As many as 2,73,810 new cases have been reported in India in the last 24 hours. With this, the total number of cases has touched 1,50,61,919.

Maharashtra reported 68,631 infections, accounting for nearly 25% of the new cases, on Sunday, followed by Uttar Pradesh with 30,566 new infections and Delhi with 25,462 new cases.

Leading brokerages have downgraded India's GDP growth projections for the current fiscal year as local lockdowns threaten the country's fragile economy.

While Nomura has downgraded projections of economic growth for the fiscal year ending March 2022 to 12.6% from 13.5% earlier, JP Morgan now projects GDP growth at 11% from 13% earlier. UBS sees 10% GDP growth, down from 11.5% earlier and Citi has downgraded it to 12%.

"The health crisis India is going through and localised lockdowns & restrictions on economic activity warrant a market correction. The targets of around 11% GDP growth and above 30% earnings growth for FY 22 that the market had assumed pre-second wave are likely to fall short. The steady rise in test positivity cases and the steady decline in recovery rates are areas of serious concern", said V K Vijayakumar, chief investment strategist at Geojit Financial Services

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