The 30-share BSE sensex tumbled 1,406.73 points or 3 percent to close at 45,553.96. The benchmark index hit an all-time high of 47,055.69 during the session.
Following the strong sell-off, the market capitalization of BSE-listed companies plunged from Rs 6.59,313.65 crore to Rs 1.78.79.323.05 crore.
“A brutal bloodbath witnessed in today’s session after a new strain of coronavirus was found in Britain. The market extended losses in the afternoon session, tracking the sell off in European markets amidst the concern about the new travel blocking restrictions in all countries. ”
“The uncertainties about the Brexit deal also affected investor sentiments,” said Sumeet Bagadia, CEO of Choice Broking.
Global markets fell to highs after the UK government reported a new strain of the coronavirus that was up to 70% more contagious.
The UK imposed a new lockdown on London and south-east England, warning that the powerful new strain of the Covid-19 virus was “out of control.”
Sensex’s 30 companies ended the day with losses, with ONGC that sank the most with 9.15%, followed by Indusind Bank, M&M, SBI, NTPC and ITC, which lost up to 6.98%.
“Concerns about new strains of Covid-19 in the UK and emerging doubts about the efficacy of vaccination against Covid-19 affected investor sentiments globally.
“Indian markets were the worst performers today … earnings reserve could also be a key reason, as domestic stocks have outperformed global markets by a wide margin in recent months,” said Binod Modi, chief strategy of Reliance Securities.
In the broader market, the EEB mid-cap and small-cap indices sank to 4.57 percent.
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.
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