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Covid scare, rise in bond yield spook mkts for 5th day; Sensex dips 585 pts

HCL Tech, Infosys, Dr Reddy's Labs, NTPC, TCS, Reliance Industries, and Tech Mahindra, all down between 2 per cent and 3.5 per cent, were the top losers on the Sensex

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MARKET WRAP | Markets | Sensex

SI Reporter  | New Delhi 

EVENT HIGHLIGHTS

MARKET LIVE: Sensex tumbles 800 points; bank, IT, pharma stocks decline
Stock market updates: came-off sharply in the noon deals on Thursday as US Treasury yields recorded a steep uptick of 5 per cent, causing equity holders to unwind their long positions. Besides, a single-day increase of over 35,800 Covid-19 cases, the highest since December 6, 2020, made market participants question the sustainability of the economic recovery.

Domestic indices started gap-up and extended their rally to clock gains of 490 points from previous day's closing after the US Federal Reserve projected the US economy would grow by 6.5 per cent in 2021 - the largest annual output growth since 1984. However, the BSE barometer of 30 shares wiped off the gains completely and plunged 1,334 points to hit a six-week low of 48,962 as US bond yields topped 1.7 per cent. 

The S&P BSE index eventually ended at 49,216.5 levels, down 585 points or 1.2 per cent. On the NSE, the hit an intra-day high of 14,875 but dropped nearly 400 points to hit a low of 14,479. By close, the 50-share index was quoting at 14,558 levels, down 163 points or 1.1 per cent.

This was the indices fifth consecutive session of declines.

HCL Tech, Infosys, Dr Reddy's Labs, NTPC, TCS, Reliance Industries, and Tech Mahindra, all down between 2 per cent and 3.5 per cent, were the top losers on the Meanwhile, Divis Labs, GAIL, Hero MotoCorp, Axis Bank, Wipro, and Cipla were the additional losers on the Nifty.

On the upside, ITC, Bajaj Auto, Bharti Airtel, M&M, Maruti Suzuki, ONGC, HDFC, Power Grid, and Bajaj Finance closed as the top gainers.

The broader fell in-line with their large-cap counter with the S&P BSE Mid and SmallCap indices sliding 1.3 per cent and 1.6 per cent, respectively at close.

All the key sectoral indices, barring FMCG and Metal, were painted in red with the Nifty IT index, down 3 per cent, leading the list of losers. Shares of information technology companies skid up to 5 per cent lower on the National Stock Exchange in intra-day trade on Thursday on account of profit booking ahead of Accenture's second-quarter fiscal year 2021 (FY21) results later today. Among individual stocks, Infosys and HCL Technologies slipped 5 per cent each while Tata Consultancy Services (TCS), Tech Mahindra, Wipro, Mphasis and Coforge were down in the range of 3 per cent to 4 per cent on the NSE. READ MORE

That apart, the Nifty PSU Bank and Realty indices declined 2 per cent each, while the Nifty Bank, Private Bank, and Financial Services indices slipped 1 per cent each.

Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.87 per cent, while stocks in China rose 0.74 per cent. Australia’s market bucked the trend and fell 0.73 per cent.

In Europe, Germany’s blue-chip DAX rose 0.7 per cent, France’s CAC 40 was up 0.2 per cent, while UK’s FTSE 100 slipped 0.1 per cent ahead of the Bank of England’s monetary policy decision due later in the day. The wider pan-European STOXX 600 rose 0.3 per cent.

The Nasdaq and S&P 500 futures, however, sank 1 per cent and 0.4 per cent, respectively while Dow Jones Futures were up 0.12 per cent.

(With inputs from Reuters)

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