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Markets Recoil As Virus Woes Trigger Global Selloff

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Markets Recoil As Virus Woes Trigger Global Selloff
PTI - 28 October 2020

Mumbai, Oct 28: The Sensex crashed 600 points while the Nifty slumped below the 11,750-mark on Wednesday, in tandem with a deep global selloff as a second wave of coronavirus cases in Europe and the US stoked fears of another round of lockdowns.

A depreciating rupee and lacklustre Q2 results further dented investor confidence domestically, traders said.

After hitting a low of 39,774.60 during the day, the 30-share BSE Sensex ended 599.64 points or 1.48 per cent lower at 39,922.46.

Similarly, the broader NSE tanked 159.80 points or 1.34 per cent to close at 11,729.60.

IndusInd Bank was the top laggard in the Sensex pack, skidding 3.45 per cent, followed by HDFC, ICICI Bank, Tech Mahindra, Bajaj Finance, UltraTech Cement and HDFC Bank.

Titan dropped 1.20 per cent after the Tata group firm reported a 37.81 per cent decline in standalone net profit to Rs 199 crore for the September quarter.

Only four index constituents closed in the green, led by Bharti Airtel which spurted 4.26 per cent after the country's second largest telecom operator posted its highest-ever quarterly consolidated revenue.

Consolidated revenue rose 22 per cent to Rs 25,785 crore in the September quarter, while net loss narrowed to Rs 763 crore.

M&M, Maruti and L&T were the other gainers.

European equities dived as resurging COVID-19 cases sparked fears of fresh lockdowns in France, Germany and other countries. Uncertainty ahead of the US presidential elections also sapped risk appetite.

Rising COVID-19 cases globally specifically in Europe and US are worrying investors as strict lockdown could be imposed and economy recovery which is still at nascent stage could once again get hit. Further, no stimulus announcement as well as elections in US too are keeping investors on edge.

"The scheduled derivative expiry of October month contracts will further add to the volatility. We reiterate our cautious view on markets and suggest continuing with stock specific trading approach," said Ajit Mishra, VP - Research, Religare Broking.

BSE bankex, finance, metal, realty, healthcare and IT indices fell up to 2.28 per cent, while telecom and capital goods indices climbed as much as 2.90 per cent.

Broader BSE midcap and smallcap indices shed up to 0.93 per cent.

Benchmarks in Europe plunged up to 3 per cent in early deals.

Bourses in Hong Kong and Tokyo ended on a negative note, while Shanghai and Seoul were in the positive territory.

Meanwhile, international oil benchmark Brent crude was trading 3.20 per cent lower at USD 40.28 per barrel.

The rupee tumbled 16 paise to end at 73.87 against the US dollar.

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