Markets in India suffered a massive loss as the Sensex plunged more than 1,400 points on Monday, and the Nifty closed 3.14% lower at 13,328.40, eliminating six straight sessions of gains. The losses come as a new strain of the coronavirus in the UK hit world markets and cast a cloud over the expected economic recovery next year.
All Sensex components finished in the red, with ONGC leading the pack with a 9.15 percent drop. IndusInd Bank, M&M, SBI, NTPC, ITC, Axis Bank, and PowerGrid all returned 6.98 percent. The market capitalization of all companies listed on the BSE decreased by Rs 6.59 lakh crore to Rs 178.79 lakh crore.
All BSE sectoral indices also closed lower, with metals, oil and gas, utilities, real estate, basic materials, industrials, energy and bankex falling as much as 6.05 percent. In the EEB, 2,433 companies fell, 592 advanced and 167 remained unchanged.
Meanwhile, the rupee also plunged 23 paise to finish at a two-week low of 73.79 against the US dollar on Monday, following a sell-off in domestic stocks.
Here are the developments that led to the sentiments that drove the market crash today:
1) A new lockdown has been imposed on the UK to curb the spread of a new strain of coronavirus that authorities have admitted is spreading rapidly.
2) After the lockdown, European stocks opened lower for fear that the economy would turn 180 degrees if companies close to control the new variant.
3) Many countries, including India, Russia, Germany, Italy and Ireland, have suspended all flight operations to and from the UK.
4) In addition, the excess of negotiations on Brexit also contributed to the negative sentiments of investors. Greater lack of depth in the market due to the holiday season helped the big drop
5) Experts fear that if the new variant spreads further, markets could fall further out of fear of economic stability.
(With contributions from the agency)
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