Market

The Biggest Sell-Off in 2 Months Drags Sensex to Close Below 50,000

The Indian benchmark indices have made a weak start to the week as they witness an intense selling trend over Monday. Both BSE Senses and NSE Nifty 50 closed the day over 2% lower. The losses in the equity markets are attributed to the growing concerns over the rising COVID-19 infections, which has led to speculations over another round of lockdown and lousy global cues.

The S&P BSE Sensex closed the day 2.25% or 1,145.44 points lower. The selling trend was such that only three of the 30 S&P BSE Sensex stocks closed the day in the green while the remaining twenty-seven dropped. The state-owned ONGC emerged as the top gainer in the index as its share price gained 1.14% over the day. 

HDFC Bank and Kotak Bank were the other stocks to close the day higher. Their share price moved ahead by 0.64% and 0.23%, respectively. Dr Reddy’s witnessed the largest drop in the share price among the Sensex stocks. Its share price was reduced by 4.77%. 

M&M, Tech Mahindra and IndusInd Bank followed as their share price tanked 4.51%, 4.42% and 4.25%, respectively, over the day. The share price of the tech giants Infosys and TCS fell by 2.06% and 3.69%, respectively. SBI, the largest lender in India, witnessed its share price collapse by 2.45%. 

The NSE Nifty 50 closed the day at 14,675.70 points. It ended the day 2.04% or 306.05 points lower. Only 10 of the 50 stocks that form the index closed the higher while the remaining forty closed in the adverse terrain. Adani Ports and JSW Steep emerged as the top gainer in the index; their share price increased by 2.79% and 2.33%, respectively. 

Hindalco and Tata Steel followed, whose share price surged by 2.05% and 1.44%, respectively. The other Nifty 50 stocks to close the day higher were Grasim, ONGC, Britannia, Hero MotoCorp, Kotak Bank and HDFC Bank. Eicher Motors led the curtailing of the index; its share price slid 5.09%. M&M and Tech Mahindra followed as their share price gave up 4.70% and 4.64%, respectively, over the day. 

For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in

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