Stock market crash: Investors lose Rs 3.72 lakh crore as Sensex tanks over 1,000 points

• Follow

Except for some information technology counters that saw buying, other stocks in the Sensex pack traded with losses, dragging the benchmark index sharply lower on Monday. The volatility indicator spiked, reflecting fear among traders.

The 30-share index traded 1,091 points, or 2.18%, down at 48,938 at around 10.14 am (IST). As a result, the market capitalisation of BSE-listed firms declined 3.72 lakh crore to Rs 203.53 lakh crore in the morning trade on April 5 against Rs 207.26 lakh crore on April 1. Domestic equity markets were closed on Friday on account of Good Friday. The NSE Nifty index was down 337 points, or 2.27%, at 14,529.

As many as 27 stocks in the Sensex pack were in the red with Bajaj Finserv falling the most 6.42%. Bajaj Finance, IndusInd Bank, State Bank of India, Mahindra & Mahindra and ICICI Bank were also down over 3%. On the other hand, Infosys, HCL Tech, Tech Mahindra and TCS were among the gainers.

Analysts believe that a sharp spike in coronavirus cases in the country and resultant restrictions weighed sentiment.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “The fundamental factors influencing markets are changing fast. There are both positives and negatives. On the positive side, the better than expected job numbers and economic recovery in the US is a big positive. On the other hand, back home in India, the fast-rising Covid cases is a cause of concern. Restriction of economic activity in many areas might impact growth recovery.”

In the wake of rising Covid-19 cases in Maharashtra, Uddhav Thackeray-led state government on April 4 imposed new curbs to control the transmission rate of the contagion. Maharashtra will be put under night curfew from 8 pm to 7 am from April 5.

In the previous session on Thursday, Sensex ended 520.68 points, or 1.05%, higher at 50,029.83, and Nifty rose 176.65 points, or 1.2% to settle at 14,867.35.