Indian stock markets slumped today with Sensex tanking nearly 1,400 points as daily coronavirus infections surpassed 100,000 for the first time. Some states have imposed fresh restrictions, sparking concerns about the pace of the country’s economic recovery. Sensex fell as much as 1391 points when it hit a low of 48,638 while Nifty was below 14,500.
Here are 10 updates:
1) Financials were under heavy selling pressure. ICICI Bank, IndusInd Bank., Bajaj Finance and SBI were down between 4% and 5%
2) Indian rupee fell to 73.39 against US dollar as compared to previous close of 73.32.
3) VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The fundamental factors influencing markets are changing fast. There are both positives and negatives. On the positive side, the better than expected job numbers & economic recovery in the US is a big positive. This will support global growth, which, in turn, will be a boost for stock markets. “
4) On the other hand, he said, back home in India, the fast-rising Covid cases is a cause of concern. “Restriction of economic activity in many areas might impact growth recovery. But, as of now, there are no signs of a slowdown in the economy. Macro numbers like GST collection (record ₹1.24 lakh cr in March) and auto sales numbers in March indicate a strong economic rebound. Q4 results will be very good and this can impart resilience to markets. How the Covid cases pan out, going forward, is a crucial factor,” he added.
5) “If Nifty breaks 14500-14600 on a closing basis, the Nifty can go down further to retest the previous lows of 14200,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
6) Asia’s third-largest economy had slumped into a historic recession last year after PM Narendra Modi had announced a sudden and strict nationwide lockdown.
7) Maharashtra, the hardest-hit state by covid and which reported a record 57,074 new cases overnight, on Sunday announced a weekend lockdown and night curfew during the weekdays from Monday to April 30.
8) The state also announced a slow of other restrictions. Private offices, too, have been instructed to shift to work-from-home mode.
9) The India VIX index has surged 14% to 22.78, indicating nervousness among investors.
10) The Nifty IT index was however trading in the green with TCS, Infosys and HCL Tech among the gainers.