Stocks

Sensex sinks 1,145 pts; Nifty drops below 14,700

BL Internet Desk Mumbai | Updated on February 22, 2021

The market have reacted positively to the Budget measures and global sentiments   -  PTI

Extending its losses for the fifth straight session, equity benchmark Sensex plummeted 1,145 points on Monday, tracking heavy losses in index majors Reliance Industries, HDFC and TCS amid negative cues from global markets.

The 30-share BSE index ended 1,145.44 points or 2.25 per cent lower at 49,744.32. The broader NSE Nifty sank 306.05 points or 2.04 per cent to finish at 14,675.70.

Dr Reddy's was the top loser in the Sensex pack, shedding around 5 per cent, followed by M&M, Tech Mahindra, Axis Bank, IndusInd Bank and TCS.

On the other hand, ONGC, HDFC Bank and Kotak Bank were the gainers.

"India markets opened on a flattish note tracking mixed Asian market peers with China trading in losses as PBoC kept interest rates unchanged while Japan was trading with marginal gains," said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.

During the afternoon session, markets started to drift lower and traded in red as amid fresh concerns over the increase in the number of COVID-19 cases contributed to the fears that the economic impact will be much larger than earlier estimates, he noted.

"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," Solanki added.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul ended on a negative note, while Tokyo traded with gains.

Stock exchanges in Europe were also trading in the red in mid-session deals.

"As the last week of trading in February begins, there are some negative signals and news. The rise in the US 10-year bond yield to 1.36 per cent reflects the markets' concern about a potential rise in inflation,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Elsewhere in Asia, bourses in Shanghai and Seoul were trading on a positive note in mid-session deals, while Hong Kong and Tokyo were in the red.

Meanwhile, the global oil benchmark Brent crude was trading 1.06 per cent higher at $62.80 per barrel.

 

 

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Published on February 22, 2021
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