Sensex drops in global selloff over rising Covid cases

Sensex drops in global selloff over rising Covid cases

MUMBAI: The global market selloff due to rising Covid-19 infections and a confirmation that there will be no economic stimulus by the US before the November 3 elections spooked Dalal Street investors on Wednesday. The result was that the sensex closed 600 points, or 1.5%, lower at 39,922. HDFC, HDFC Bank, ICICI Bank, Reliance Industries and Infosys accounted for most of the index’s slide. As many as 26 of the 30 sensex constituents closed in the red, BSE data showed.
According to HDFC Securities head (retail research) Deepak Jasani, markets around the world plunged on Wednesday as coronavirus infections increased rapidly in Europe and the US. This sparked “fears of possible strict lockdown measures that could damage already fragile economic recoveries”. The uncertainty surrounding the upcoming US presidential elections “has succeeded in triggering a correction in global markets already reeling under Covid-19 spread”, Jasani said in a note.

The day’s selloff on Dalal Street was led by foreign funds with a net selling figure of Rs 1,131 crore, while domestic funds recorded a net inflow of just Rs 1.5 crore. The session also left investors poorer by Rs 1.6 lakh crore with the BSE’s market capitalisation now at Rs 157 lakh crore.
Religare Broking VP (research) Ajit Mishra also said that the lack of any news on a stimulus in the US kept investors on the edge, while the scheduled derivatives expiry of October month contracts is expected to add to the volatility.
Around the world, Nikkei in Japan and Hang Seng in Hong Kong both closed marginally lower but Europe showed extreme weakness from the start and touched 4-6 month lows. In late trades, FTSE in the UK was down 2.7%, while Dax was down 3.9%. And in early trades, Dow Jones was down 2.8%, while Nasdaq was down 3.1%.The broader indices too followed the 1.5% slide in the sensex with BSE 100 down 1.4% and BSE 500 down 1.3%. Mid- and small-cap stocks, however, were relatively steady with BSE’s mid- and small-cap indices both ending down 0.9% each.
Source From : Times Of India

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