Sensex tumbles 585 points, Nifty drops below 14,600
Extending its losing streak to the fifth consecutive session, equity benchmark Sensex tanked 585 points on Thursday, tracking losses in index majors Infosys, Reliance Industries Ltd., and TCS. After rallying nearly 500 points earlier in the day, the 30-share BSE index gave up all gains to end 1.17 percent lower at 49,216.52. The broader NSE Nifty slumped 1.11 percent at 14,557.85.
Who were the top gainers and losers?
HCL Tech was the top loser in the Sensex pack, shedding around 4 percent, followed by Infosys, Dr. Reddy's, TCS, Reliance Industries, Tech Mahindra, and NTPC. On the other hand, ITC, Bajaj Auto, M&M, Maruti, and Bharti Airtel were among the gainers.
What affected the Indian markets?
A sharp rise in daily COVID-19 cases in India has raised apprehensions about the sustainability of the ongoing rebound in corporate earnings, Binod Modi, Head Strategy at Reliance Securities, noted. He further added that the mounting concerns of possible fresh economic restrictions made enthusiasm of dovish commentary from the Federal Reserve short-lived for domestic markets.
Rise in COVID-19 cases is making investors jittery
"Having seen a brisk gap-up opening on positive global cues, domestic equities fell sharply for the fifth consecutive day as a sharp rise in coronavirus cases in the country made investors jittery," said Modi.
Brent crude oil trading at $67.73 per barrel
After its two-day policy meeting, the US Fed reassured investors to keep its key interest rate near zero through 2023. Stock exchanges on Wall Street ended with gains in the overnight session. Elsewhere in Asia, Bourses in Shanghai, Hong Kong, Tokyo, Seoul ended on a positive note. Meanwhile, the global oil benchmark Brent crude was trading 0.40 percent lower at $67.73 per barrel.
