Investors lose Rs 2 lakh crore as Covid-19 cases surge; what's next?
The 30-share Sensex tanked 983.58 points, or 1.98%, to 48782.36 due to heavy selling in banking and financial majors.
Investors on Dalal Street lost more than Rs 2 lakh crore on April 30 on rising uncertainty due to Covid-19. The 30-share Sensex tanked 983.58 points, or 1.98%, to 48782.36 due to heavy selling in banking and financial majors. Likewise, the 50-share Nifty index declined 263.80 points, or 1.77%, to 14631.10.
The market capitalisation of BSE-listed firms declined by Rs 2.02 lakh crore to Rs 209.05 lakh crore from Rs 207.03 lakh crore. Health ministry data on April 30 showed that there were 386,452 cases over a 24-hour period — the highest daily increase globally. At least 3,498 people have died in that time.
As many as 27 stocks in the Sensex pack ended the day in the red with HDFC falling the most 4.38%. It was followed by HDFC Bank (down 4.09%), ICICI Bank (down 3.36%), Kotak Mahindra Bank (down 3.24%) and Asian Paints (down 2.81%). On the other hand, ONGC (up 4.32%), Sun Pharma (up 1.57%) and Dr Reddy’s Labs (up 1.23) stood only gainers in the index.
Speaking on the factors behind the fall, Deepak Jasani, head of retail research, HDFC Securities said: “India’s benchmark equity indices fell on April 30 amid the extension of lockdown-like curbs in some states and ahead of uncertainty arising from the outcome of state assembly results due over the weekend.”
S Ranganathan, head of research at LKP Securities said, “Heavy selling in key pivotals including financials and HDFC twins kept indices in the red throughout the day as fears of localised lockdowns manifesting itself into a slowdown made investors cautious ahead of the state poll outcomes.”
Asian shares were mostly lower amid uncertainty about the prospects for a global economic recovery from the coronavirus pandemic. European equities were set to close the week flat as investors weighed up the potential for recovery in the eurozone’s coronavirus-impacted economy against a strengthening euro and signs of slowing growth in China.
In the coming week, Shrikant Chouhan, executive vice president (equity technical research), Kotak Securities said, “We would see further bullishness in pharmaceuticals, commodities and PSU stock. The value buying should emerge in private banks.”