Indian markets slumped over 3 per cent on Monday as stimulus measures announced over the weekend, as part of the government's Rs 20 trillion economic package, failed to cheer investors who were expecting huge fresh liquidity infusion into the system to improve the aggregate demand.
Moreover, the government's decision to extend teh nationwide lockdown, albeit with some relaxations, till May 31, also dented sentiment.
The benchmark S&P BSE Sensex tumbled over 1,069 points or 3.44 per cent but managed to close above the crucial 30,000-mark at 30,028.98 levels. NSE's Nifty50, meanwhile, ended the session at 8,823 level, down 314 points or 3.43 per cent. Meanwhile, volatility index, India VIX, rose 7.58 per cent and crossed the 40-mark.
IndusInd Bank (down 10%), HDFC, Maruti, and Axis Bank (all down 7% each) were the top Sensex laggards while TCS, up 2 per cent, gained the most. The HDFC twins and ICICI Bank contributed the most to the Sensex's fall today.
The Nifty sectoral trend remained negative, led by Nifty Bank which crashed 6.7 per cent. On the other hand, Nifty IT index gained 0.9 per cent.
In the broader market, the S&P BSE MidCap index settled 3.75 per cent lower and the S&P BSE SmallCap index shed 2.9 per cent.
Aviation stocks InterGlobe Aviation and SpiceJet tumbled as much as 9.5 per cent on the BSE on Monday after the government's Rs 20 trillion economic package failed to deliver immediate liquidity support to the bleeding airlines.
Shares of companies that provide financial services, including banks, non-banking financial companies (NBFCs) and housing finance companies (HFCs), tumbled up to 12 per cent on the BSE on Monday amid concerns that asset quality metrics may come under pressure due to the extended nation-wide lockdown and challenging economic environment.
European shares bounced on Monday after their worst week in two months, as investors hoped for a gradual economic recovery with many countries easing coronavirus-led lockdowns.
In commodities, Gold rose 1 per cent to its highest in more than seven years as data released on Friday showed US retail sales and industrial production both plunged in April, putting the economy on track for its deepest contraction since the Great Depression.
Brent crude climbed 5.7 per cent higher to $34.35 a barrel, supported by output cuts and signs of a gradual recovery in demand amid easing coronavirus curbs.