Markets: Sensex, Nifty tank on Covid-19 resurgence, global and local headwinds
New Delhi: Resurgence of the Covid-19 infections in India, besides China and other countries, and global and local headwinds in markets pulled down Sensex and Nifty as the markets opened after a four-day break on Monday.
Amid new cities under lockdown as infections soared, China reported the first death because of the fresh wave of infections. Prolonged lockdowns in Shanghai, Shenzhen, and other cities are dragging down China’s output.
India also reported a doubling of new cases in the last 24 hours to 2,200.
With HDFC Bank and Infosys staging a dismal show in the fourth quarter (Q4FY22) earnings, coupled with global headwinds — such as likely aggressive rate hikes amid rising inflation, soaring bond yields — weighed on investor confidence, reports said.
The benchmark S&P BSE Sensex tanked nearly 1,500 points intraday to hit a low of 56,842. It, however, erased losses mildly to end at 57,167, down 1,172 points or 2 percent.
On the NSE, the Nifty50 tumbled about 400 points intra-day to slip below the 17,100-mark. It ended at 17,174, down 302 points or 1.7 percent.
Infosys was the biggest laggard on the 30-pack index as it shed 7.2 percent. The stock reported its sharpest intra-day fall in the last two years. Earlier, on March 23, 2020, Infosys had plunged 12 percent in the intra-day trade on the BSE.
Likewise, shares of HSFC Bank cracked about 4.7 percent after the lender’s operating performance hit a low for the first time in many years.
Even Asian markets struggled for direction on Monday, with investors reacting to the release of Chinese economic data, including first-quarter’s low gross domestic product figures. In Japan, the Nikkei 225 fell 1.08 percent to close at 26,799.71.
Mainland Chinese stocks closed mixed, with the Shanghai composite down 0.49 percent to 3,195.52 and the Shenzhen component climbing 0.368 percent to 11,691.47.
Also, the benchmark 10-year US Treasury yield rose Monday to a level not seen in over three years, as traders continued to assess rising inflation.
(VP)
