New Covid variant spooks markets; Sensex ends 1,688-pts lower at 57,107
The stocks witnessed their biggest intra-day fall since April 12, 2021, and also their biggest weekly fall since January 29, 2021
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Closing Bell
Fears that a new strain could fuel outbreaks in many countries, straining health systems, potentially evading vaccines and complicating efforts to reopen economies and borders, sent a wave of risk aversion across global markets Friday. CLICK HERE TO READ WHAT'S SPOOKING THE MARKETS
Falling in-line with all global peers, the BSE Sensex plunged 1,688 points, or 2.9 per cent, to end today's bloodbath at 57,107 levels. The index hit a high and low of 58,255 and 56,994, respectively.
The Nifty50, too, erased 510 points, or 2.9 per cent, to close at 17,026. During the day, the index slipped below the 17,000-mark (at 16,986), a first since August this year.
"Triggered by the new covid variant in South Africa, markets plummeted into negative territory following weak global peers. Existing inflation fears coupled with worries of an aggressive policy tightening by the US Fed Reserve also added to Friday's catastrophic session. On the domestic front, broad-based sell-off was witnessed as investors dumped covid-sensitive stocks while focus was shifted towards the pharma sector," said Vinod Nair, Head of Research at Geojit Financial Services
Click here for market snapshot
The stocks witnessed their biggest intra-day fall since April 12, 2021, and also their biggest weekly fall since January 29, 2021.
The meltdown was equally bad in the broader markets, where the BSE MidCap and SmallCap indices fell 3.2 per cent and 2.6 per cent, respectively.
"Nifty has new base at 16,000-16,500 now which may be tested in this weakness," said Amit Gupta, Fund Manager – PMS, ICICI Securities.
Exports-linked stocks such as auto and metals crumbled on the bourses with the Nifty Metal index closing 5 per cent lower and the Auto index sliding 4 per cent.
ALSO READ: Market strategy: Time to be greedy or fearful? Here's what analysts suggest
Meanwhile, the Nifty Bank index fell 3.6 per cent and the Nifty Realty index slipped 6 per cent. The Nifty Pharma index, up 1.7 per cent, was the only gainer on the NSE.
India VIX climbed 25 per cent and hit a 6-month high of 21-level.
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Markets at 02:30 PM
LIVE markets update: The key benchmark indices continue to languish at lower levels with deep cuts on the back of a global sell-off following the emergence of new variant of Coivd-19.
The BSE Sensex was down 1,378 points at 57,417, and the NSE Nifty 50 had shed 422 points at 17,114.
Heavyweights, Reliance, HDFC, ICICI Bank and HDFC Bank were the major draggers on the BSE Sensex, accounting for a loss of around 680 points on the BSE Sensex.
The broader indices were also down in tandem with the benchmarks. The BSE Midcap and Smallcap indices were down 2.7 per cent and 2 per cent, respectively
"Nervousness on the new variant of Corona virus and expectations of US increasing the pace of tapering have led to recent market weakness. This trend may take some time to recover as the WHO meeting on the new mutant variant impact and hospitalization rates in US and Europe will be watched by the market very closely," said Amit Gupta, Fund Manager – PMS, ICICI Securities.
Fears that a new strain could fuel outbreaks in many countries, straining health systems, potentially evading vaccines and complicating efforts to reopen economies and borders, sent a wave of risk aversion across global markets Friday. CLICK HERE TO READ WHAT'S SPOOKING THE MARKETS
Falling in-line with all global peers, the BSE Sensex plunged 1,688 points, or 2.9 per cent, to end today's bloodbath at 57,107 levels. The index hit a high and low of 58,255 and 56,994, respectively.
The Nifty50, too, erased 510 points, or 2.9 per cent, to close at 17,026. During the day, the index slipped below the 17,000-mark (at 16,986), a first since August this year.
"Triggered by the new covid variant in South Africa, markets plummeted into negative territory following weak global peers. Existing inflation fears coupled with worries of an aggressive policy tightening by the US Fed Reserve also added to Friday's catastrophic session. On the domestic front, broad-based sell-off was witnessed as investors dumped covid-sensitive stocks while focus was shifted towards the pharma sector," said Vinod Nair, Head of Research at Geojit Financial Services
Click here for market snapshot
The stocks witnessed their biggest intra-day fall since April 12, 2021, and also their biggest weekly fall since January 29, 2021.
The meltdown was equally bad in the broader markets, where the BSE MidCap and SmallCap indices fell 3.2 per cent and 2.6 per cent, respectively.
"Nifty has new base at 16,000-16,500 now which may be tested in this weakness," said Amit Gupta, Fund Manager – PMS, ICICI Securities.
Exports-linked stocks such as auto and metals crumbled on the bourses with the Nifty Metal index closing 5 per cent lower and the Auto index sliding 4 per cent.
ALSO READ: Market strategy: Time to be greedy or fearful? Here's what analysts suggest
Meanwhile, the Nifty Bank index fell 3.6 per cent and the Nifty Realty index slipped 6 per cent. The Nifty Pharma index, up 1.7 per cent, was the only gainer on the NSE.
India VIX climbed 25 per cent and hit a 6-month high of 21-level.
====================================================================
Markets at 02:30 PM
LIVE markets update: The key benchmark indices continue to languish at lower levels with deep cuts on the back of a global sell-off following the emergence of new variant of Coivd-19.
The BSE Sensex was down 1,378 points at 57,417, and the NSE Nifty 50 had shed 422 points at 17,114.
Heavyweights, Reliance, HDFC, ICICI Bank and HDFC Bank were the major draggers on the BSE Sensex, accounting for a loss of around 680 points on the BSE Sensex.
The broader indices were also down in tandem with the benchmarks. The BSE Midcap and Smallcap indices were down 2.7 per cent and 2 per cent, respectively
"Nervousness on the new variant of Corona virus and expectations of US increasing the pace of tapering have led to recent market weakness. This trend may take some time to recover as the WHO meeting on the new mutant variant impact and hospitalization rates in US and Europe will be watched by the market very closely," said Amit Gupta, Fund Manager – PMS, ICICI Securities.
He added: India is on higher earnings growth trajectory and this is the only major risk which can spoil the sentiments. The current dollar strength also suggests the risk-off sentiments and is leading to FII flows currently. Nifty has new base at 16,000-16,500 now which may be tested in this weakness.