Sensex tanks over 600 points; Key reasons behind the fall
On the BSE, 538 shares rose and 2087 shares fell. A total of 148 shares were unchanged.
The domestic equity barometers further extended losses in mid-morning trade. Media stocks declined for fourth day. The Nifty slipped below the 14,300 mark. The March 2021 F&O contracts will expire today, 25 March 2021.
At 11:21 IST, the barometer index, the S&P BSE Sensex, was down 603.45 points or 1.23% to 48,576.86. The Nifty 50 index lost 178.50 points or 1.23% to 14,370.90.
In the broader market, the S&P BSE Mid-Cap index slipped 2.14% while the S&P BSE Small-Cap index fell 2.01%.
The market breadth was weak. On the BSE, 538 shares rose and 2087 shares fell. A total of 148 shares were unchanged.
Key reasons for fall:
Rising domestic coronavirus cases dented investors sentiment. Global cues were subdued as Covid-induced lockdowns in Europe and potential U.S. tax hikes hit investors’ risk appetite.
COVID-19 update:
Total COVID-19 confirmed cases worldwide stood at 124,688,146 with 2,742,974 deaths. India reported 395,192 active cases of COVID-19 infection and 160,692 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
India recorded 53,476 new Covid-19 cases in a span of 24 hours, the highest single-day rise so far this year, taking the nationwide coronavirus tally to 1,17,87,534, the Union health ministry said on Thursday. Now, India has over 1.17 crore Covid-19 cases, the third-highest amount behind the United States and Brazil.
The government has expressed concern over the recent spike in Covid-19 cases in Maharashtra and Punjab. Maharashtra reported highest 28,699 cases in last 24 hours followed by Punjab with 2,254 cases. Addressing media in New Delhi yesterday, Union Health Secretary Rajesh Bhushan said top ten districts where maximum active cases are concentrated are Pune, Nagpur, Mumbai, Thane, Nashik, Aurangabad, Nanded, Jalgaon, Akola and Bengaluru Urban.
Economy:
Fitch has revised India’s GDP growth estimate to 12.8% for next fiscal from the previous 11% on the back of a stronger carryover effect, a looser fiscal stance, and better virus containment.
The ratings agency, in its latest Global Economic Outlook GEO, anticipates the level of the country’s GDP to remain well below its pre-pandemic forecast trajectory. Fitch also expects GDP growth to ease to 5.8% in Fiscal Year 2023.
In a report it said, India’s recovery from the depths of the lockdown-induced recession in the second quarter of 2020 has been swifter than expected. GDP surpassed its pre-pandemic level in the fourth quarter of current fiscal.
It also added that High-frequency indicators point to a strong start to 2021. The manufacturing Purchasing Managers’ Index PMI remained elevated in February, while the pickup in mobility and a rise in the services PMI point to further gains in the services sector.
The ratings agency notes that it no longer expects the Reserve Bank of India (RBI) to cut its policy rate, owing to a brighter short-term growth outlook and a more limited decline in inflation than it had forecast.
Buzzing Index:
The Nifty Media index fell 2.69% to 1,549.45. The index has lost 6.32% in four sessions while the benchmark Nifty has declined by 2.44% during the same period.
Dish TV India (down 5.13%), Inox Leisure (down 3.4%), D.B. Corp (down 3.16%), Zee Entertainment (down 2.95%), Hathway Cable (down 2.2%), PVR (down 2.19%), Sun TV Network (down 2.06%), Jagran Prakashan (down 1.67%) and TV18 Broadcast (down 1.66%) declined.
Global Markets:
Most Asian stocks recovered from early lows on Thursday, despite a subdued session overnight on Wall Street yesterday.
US stocks gave up earlier gains and closed in the red Wednesday as tech stocks sold off, continuing a market rotation out of high-flying growth names.
On Wednesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen appeared for a second day for virtual Capitol Hill testimony. Talking with members of the Senate Banking Committee, Powell said he expects the economy to experience superior growth in 2021 amid a recovery from the pandemic.
Investors are on edge as many regions of the world are seeing rising Covid-19 cases as highly contagious variants continue to spread. Germany and France are extending or enforcing new lockdown measures.
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