Sensex sinks 1,407 pts to close at 45,553.96
Bears were back on the Dalal Street with renewed ferocity and left a trail of bloodbath that eroded the investors’ wealth by Rs 6.59 lakh crore on Monday as equities tanked after the UK reported a new strain of the Covid-19 virus. The new strain of the coronavirus was up to 70 per cent more contagious.
The market gave no corner to hide as the 30-share BSE Sensex plunged 1,406.73 points or 3 per cent to close at 45,553.96 after hitting an all-time high of 47,055.69 during the session. There was a sense of déjà vu as the equities saw the same free for all as was witnesses in March when indices lost nearly 30 per cent in a matter of days.
Following the sharp selling, the market capitalisation of BSE-listed firms plummeted by Rs 6,59,313.65 crore to Rs 1,78,79,323.05 crore. In the broader market, the BSE mid-cap and small-cap indices tanked up to 4.57 per cent.
As it is the market was looking for an excuse to correct since the Indian equities have outperformed global markets by a wide margin in recent months. All BSE sectoral indices also closed lower, with metal, oil and gas, utilities, realty, basic materials, industrials, power and bankex falling as much as 6.05 per cent. At the BSE, 2,433 companies declined, while 592 advanced and 167 remained unchanged
The brutal bloodbath came after the UK reported a new coronavirus strain on Sunday. The Dala street took a further cue from the European markets in the afternoon amid fear of fresh traveling lockdown restrictions across countries. The UK imposed a fresh lockdown in London and southeast England, warning that the potent new strain of the Covid-19 virus was “out of control”.
All 30 Sensex companies closed the day with losses, with ONGC tanking the most by 9.15 percent, followed by Indusind Bank, M&M, SBI, NTPC and ITC which shed up to 6.98 per cent.
Tuesday, 22 December 2020 | PNS | New Delhi
