Stock Market Updates: Analysts Say Second Wave Infections Fears Hit Global Markets
National stock markets suffered their worst day in three weeks on Thursday with benchmark indices breaking a rally that lasted 10 consecutive days as a record number of new COVID-19 infections in parts of Europe spooked investors across the world. world. The Sensex index fell 1,097.98 points, or 2.69 percent, to 39,696.76 at the weakest level during the session, and the broader benchmark Nifty index fell to a low of 11,666.30, 304.75 points. or 2.55 percent less than its previous closing. Analysts say fears of a second wave of infections affect global markets.
Here are 10 things to know about today’s markets:
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A selloff in financial and IT stocks pushed markets lower. The Sensex closed 1,066.33 points (2.61 percent) with a fall of 39,728.41, and the Nifty closed at 11,680.35 for the day, 290.70 points (2.43 percent) less than its previous close. , his worst single-day loss since Sept. 24. , Nifty here)
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Bajaj Finance, Tech Mahindra, ICICI Bank, IndusInd Bank, Reliance Industries, SBI and HDFC Bank, which closed between 3.54% and 4.98% less, were the most affected among the 47 laggards in the Nifty basket of 50 Actions.
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Asian and European benchmarks fell around 1-2 percent as concerns that a resurgence of the coronavirus pandemic could lead governments to shut down economies again spurred profit-taking, particularly after the recent rebound. .
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Additionally, pessimistic comments from US Treasury Secretary Steven Mnuchin that a stimulus deal was unlikely to be made before the November 3 vote in the United States hurt global market sentiment.
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Reliance Industries, HDFC Bank and ICICI Bank were the biggest hurdles for Sensex, and together they accounted for a loss of nearly 500 points on the index.
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Infosys shares closed 2.47% lower at 1,108 rupees each on the BSE, after hitting an all-time high of 1,185 rupees during the session, a day after the country’s second-largest exporter of IT services reported a better-than-expected quarterly profit and raised annual revenue growth forecast.
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Analysts say the earnings reserve in TI stocks, which drove most of the recent rally, dragged markets lower. “Ongoing volatility is characteristic of bull markets. The psychological mark of 12,000 has obviously attracted a bit of realignment (of the portfolio) and we’ve seen defensive sectors like IT and pharmaceutical in the red today,” Anand James, Chief Strategist Kochi Geojit Financial Services market report, told NDTV.
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The NSE’s India VIX index, which measures expected volatility in the short term, rose 9.14%, its highest level since Sept. 25. Around the corner, the markets seem to be betting on earnings surprises to help with the next stage of advantages, “added James.
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Banking and financial services stocks, which weigh 33 percent in the Nifty 50 Index, also slumped, adding to the widespread selloff. The Nifty Bank Index, which tracks 12 major lenders in the country, finished 3.36% lower, trailed by HDFC Bank and Kotak Mahindra Bank. The Nifty Financial Services Index fell 2.95 percent.
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On Wednesday, the Supreme Court said that any delay in implementing an “interest on interest” waiver on loans of up to 2 million rupees is not in the common man’s interest. The high court was hearing a series of petitions on whether banks should charge compound interest to borrowers who choose to defer payments on their loans during the coronavirus crisis.
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