The second wave of Covid-19 infections in India is getting bigger than anticipated earlier, and is expected to ruin the pace of economic recovery, analysts said. This is also leading to a sharp rise in volatility, making trading risky, they added.
The 30-share pack Sensex plummeted 870.51 points or 1.74 per cent to close at 49,159.32, having plunged 1,450 points at the weakest level of the day. Its broader peer NSE Nifty tumbled 229.55 points or 1.54 per cent to settle at 14,637.80.
“High valuation added further concern due to a possible downgrade in Q1 FY22 earnings. Barring IT, metal and telecom, all sectors remained in the red. A policy decision in the upcoming MPC announcement and Q4 earnings will define market volatility in the coming days,” said Vinod Nair, Head of Research at Geojit Financial Services.
Investors’ wealth decreased by Rs 2.1 lakh crore as the cumulative market capitalisation of BSE-listed companies came down to Rs 207.26 lakh crore.
Market at a glance
- Bajaj Finance, IndusInd Bank drop 6% each
- Fear gauge India VIX spikes 6.1% to 21.21
- IT stocks rally ahead of Q4 earnings; Nifty IT rises 2%
- Metal stocks continue their forward march led by SAIL’s 7% jump
- Notwithstanding market crash, 164 stocks hit 52-week highs