Sensex, Nifty Post Biggest Single-Day Drop Since May
India's equity markets witnessed their biggest single-day drop in seven months as a new strain of Covid-19 in parts of the United Kingdom dampened investor sentiment.
The S&P BSE Sensex ended 3% or over 1,400 points lower at 45,553. However, it managed to end 600 points higher than the lowest point of the day. The NSE Nifty 50 index too ended 3.1% lower, declining over 400 points to end at 13,328. The index managed to end 200 points higher from its day's low of 13,131.
All the constituents of the 50-stock gauge ended with losses. Tata Motors (down 9.5%) and PSUs like ONGC (down 9.4%), GAIL (down 8.4%), Indian Oil (down 7.4%) and BPCL (down 6.2%) were among the top laggards in today's session.
Both the benchmark indices witnessed a heavy correction after gaining for seven weeks in a row.
All sectoral indices ended lower. The losses were led by the PSU Bank index which fell over 7% and by the Media index which declined over 6.5%. The Metal index too fell 6% in today's session. The Nifty I.T. and Nifty Pharma indices, which were outperforming the indices through most parts of the trading day too gave up gains to decline 2% and 4% respectively.
Other indices like the Realty index fell over 5% while the Auto index too saw declines of a similar quantum.
Broader markets underperformed the benchmarks in today's session. Both Nifty Midcap and Nifty Smallcap index fell over 5%.
India Volatility Index ended 27% higher to close above the mark of 20 for the first time in 13 trading sessions. The gauge ended at 23.65.
1,687 stocks on the NSE ended with losses while 254 managed to buck the trend and close with gains.