NEW DELHI: Stock indices ended a 10-day winning streak on Thursday with the benchmark BSE sensex falling more than 1,000 points, dragged down by losses in banking, financial and IT stocks amid weak signals from global markets.
The 30-share BSE index fell 1,066 points or 2.61 percent to close at 39,728; while the broader NSE Nifty closed 291 points or 2.43 percent lower at 11,680.
Bajaj Finance, Tech Mahindra, IndusInd Bank, ICICI Bank, SBI and Reliance were the main losers in the sensex package falling more than 4.68 percent. 29 out of 30 stocks ended in the red.
While Asian Paints was the only winner.
On the NSE platform, all sub-indices finished in the red with Nifty Bank, Financial Services, Private Bank and IT falling as much as 3.36%.
These are the key points behind the slide:
* Hopes of Encouragement Fade:
Global stock markets and US futures fell on hopes that US leaders will agree to fresh economic aid before the November 3 presidential election fades. US Treasury Secretary Steven Mnuchin said a fiscal stimulus deal would likely not be reached before the November election.
“US stimulus expectations have been a driver lately, but markets are now weighing the possibility of it being pushed past the election, taking away some of the excitement from the recent boost in global equities,” James said.
* Tensions between the United States and China:
The US state department has submitted a proposal for the Trump administration to add China’s Ant Group to a trade blacklist, Reuters news agency reported, before the fintech firm goes public.
The move comes as China’s hardliners in the Trump administration seek to send a message to dissuade American investors from participating in Ant’s initial public offering.
* Growing Covid Concerns:
Concerns over new closures amid mounting Covid-19 cases also fueled profit-taking. Some European countries are reviving curfews and closures to try to contain the rise in new coronavirus cases, and Britain is expected to impose stricter Covid-19 restrictions starting at midnight Friday.
France became the latest European nation to toughen anti-coronavirus measures, imposing a curfew on Paris and eight other cities starting Saturday, while Germany and Ireland also increased restrictions.
In India, 67,708 new cases of Covid-19 and 680 deaths were reported in the last 24 hours. The total case count stood at 73,07,098, including 8,12,390 active cases.
* IT, financial stocks slide:
IT, banking and finance stocks all reversed course to trade lower as investors made gains in a sector that has helped fuel a market rally so far this month.
The Nifty IT Index slumped 2.87%, after rebounding nearly 6% this month on strong quarterly results and buybacks.
Infosys Ltd, whose shares hit a record early in the session, reversed course to finish 2.47 percent lower. The IT giant boosted revenue prospects as strong demand for its digital services helped it beat expectations for quarterly earnings.
(With contributions from the agency)
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