Sensex nosedives 1,145 points, ends below 50,000-mark

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Indian markets extended their losses for the fifth consecutive and ended with over 2% losses due to rising COVID-19 cases and negative global cues triggering selling in domestic shares.

At close, Sensex was down 1,145 points or 2.25% at 49,744, and the Nifty was down 306 points or 2.04% at 14,675.

ONGC, Kotak Mahindra Bank, and HDFC Bank were the only gainers on the Sensex. On the downside, Dr Reddy’s Labs, M&M, Tech M, IndusInd Bank & Axis Bank lost over 4%.

On the sectoral front, metal stocks were shinning at the bourses on the back of an improved outlook in the copper market. Nifty Metal index rose 1.6%. All other sectoral indices were trading in the red. Nifty Realty, PSU banks, Pharma, IT, indices declined over 2.5%. While Nifty Bank, FMCG closed with losses up to 2%.

“During the afternoon session markets started to drift lower and traded in red as amid fresh concerns over the increase in the number of infected COVID-19 cases contributed to the fears that the economic impact will be much larger than earlier estimates. Also, the major western markets failed to provide any support as it opened to trade in red with equity investors growing concern about rising bond yields in recent weeks which could hurt high-growth companies reliant on easy borrowing. On sectoral front, today’s fall was led by IT, Banks, Financial, Realty, Auto sectors while the only sector to have traded in green remained Metals,” said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers

The volatility index, India VIX, shot up  14.5% to 25.47 levels. However, the broader market felt lesser pain as S&P BSE MidCap and SmallCap indices fell 1.34% and 1%, respectively.

Numbers to track

The yield on 10-year benchmark federal paper rose to 6.192% as compared to its previous close of 6.132%.

In the foreign exchange market, the partially convertible rupee rose to 72.4125, compared with its previous closing of 72.65

MCX Gold futures for 5 April 2021 settlement added 0.57% to Rs 46,462.

The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, gained 0.2% to 90.55.

In the commodities market, Brent crude for April 2021 settlement rose 45 cents to $63.36 a barrel.

Global market

The US Dow Jones 30 Futures was down 183 points, indicating a weak opening the US stocks on Monday.

Shares in Europe declined across the board while Asian markets ended mixed on Monday. Developments surrounding the pandemic and vaccine rollout remain in focus. The UK is set to detail later on Monday how it plans to lift lockdown measures gradually in the coming months, as its vaccination rollout maintains its good pace.

Meanwhile, China kept the one-year loan prime rate (LPR) unchanged at 3.85%, largely in line with expectations. The five-year LPR was also kept steady at 4.65%. The LPR is a lending reference rate set monthly by 18 banks.

Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued.