New lockdown norms panics market, Sensex ends in red

New lockdown norms panics market, Sensex ends in red

Mumbai, April 20, 2021

India's key equity indices ended Tuesday's trade in the red after more stringent lockdown norms were announced by the Maharastra government.

The new norms panicked investors into a late session sell-off.

Both the key indices ceded their early gains which came a day after the Centre decided to liberalise the vaccination drive.

The decision allowed the two indices to open with a positive upbeat.

Globally, Asian stock markets were largely down on Tuesday after Wall Street was pulled lower by rising Covid-19 cases, tech stock declines, dollar weakness and a lull in fresh data.

On the domestic front, pharma and auto sector stocks gained the most, while IT and materials indices fell the most.

Consequently, the S&P BSE Sensex traded at 47,705.80, lower by 243.62 points, or 0.51 per cent, from its previous close.

The Nifty50 on the National Stock Exchange traded at 14,296.40, down 63.05 points or 0.44 per cent, from its previous close.

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "Equity markets opened gap up but lost momentum mid-way and saw sharp sell-off in the fag end as the Covid-led restrictions increased further."

"Global cues turned weak as rising global Covid-19 cases started worrying the market over possible reintroduction of restrictions which could delay the economic recovery."

Vinod Nair, Head of Research at Geojit Financial Services, said: "Indian markets witnessed a bounce-back in its opening trade, however, failed to hold onto its early gains due to weak global cues and the possibility of a stricter lockdown in Maharashtra."

"Despite the vaccine drive kindling hopes of recovery, the trend in the market will depend on positive developments like decreasing covid cases and lifting restrictions. IT and FMCG were the sectoral laggards while mid and small-caps outperformed."

IANS

No stories found.
NetIndian
www.netindian.in