Stocks

Global gloom sends Sensex crashing 811 points; Nifty down 2.46%

Our Bureau Mumbai | Updated on September 21, 2020 Published on September 21, 2020

Fears over Covid second, fading hopes of US fiscal stimulus prove dampeners

Fears of a second wave of Covid-19 in Europe and fading hopes for US fiscal stimulus spread gloom for stock market investors globally.

The Sensex and Nifty, too, declined sharply as nervousness gripped traders on Monday. The Sensex fell 2.09 per cent, or 811 points, to 38,034. The broader index Nifty was down 2.46 per cent, or 254 points, at 11,250.

The UK government gave an alert that the country is at a “critical point” in the pandemic and that a second lockdown could be needed to stop the renewed spread of the disease.

Investor sentiments also took a beating as the International Consortium of Investigative Journalists revealed that several global banks moved sums of allegedly illicit funds over nearly two decades.

Stock futures in the US were trading 1.7 to 2.3 per cent lower. In Europe, the stock markets of the UK, Germany and France were trading lower by more than 3 per cent.

According to provisional data, foreign portfolio investors sold stocks worth more than ₹539 crore in the cash segment. Domestic institutional investors were sellers to the tune of ₹517 crore in the cash market. Derivatives data were yet to be put out by the exchanges.

“On Tuesday, we expect the Indian market to remain under pressure,” said Shrikant Chouhan, Executive Vice-President, Equity Technical Research at Kotak Securities. “On the charts, the Nifty 50 index has changed its trading range; 11,300, which was earlier the support level for the index, will now act as resistance. The Nifty 50 index could fall to 11,000 or 10,900 levels if it breaks 11,150. Our advice is to reduce weak long positions if Nifty bounces to 11,300/11,330 levels.”

Stocks fell sharply in early trading on Wall Street on Monday, joining a global tumble for markets as the S&P 500 sank nearly 2 per cent, said an Associated Press report.

Dow Jones crashes

Losses began in Asia as soon as trading opened on Monday, and they accelerated in Europe before knocking US stocks and Treasury yields lower. The Dow Jones Industrial Average was down 591 points, or 2.1 per cent, at 27,065, as of 7:19 pm IST, and the Nasdaq composite was down 1.2 per cent.

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Published on September 21, 2020
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