Benchmark indices on Wednesday were spooked by the renewed spread of the coronavirus amid surging cases in China and a few other countries that sparked fears about the health of the global economy. While the Sensex crashed 635 points, the Nifty finished below the 18200 mark.
Investors were worried about the impact of the rising cases on sectors such as hospitality, aviation and entertainment even as diagnostics and pharmaceuticals witnessed spirited buying.
In India, health minister Mansukh Mandaviya said after a high-level meeting that all states have been directed to be on alert and strengthen surveillance.
Analysts said the sentiment got soured on reports that China could be facing a massive death toll after it lifted its stringent zero-Covid policy.
Countries such as the US, South Korea, Japan and Brazil have also seen a surge in cases. This has led to calls from some quarters that India should tighten its international air travel policy.
Declining for the second straight day, the 30-share BSE benchmark Sensex after opening in the red at 61993.71, tumbled 635.05 points, or 1.03 per cent, to settle at 61067.24. The broader NSE Nifty declined 186.20 points, or 1.01 per cent, to end at 18199.10.
IndusInd Bank was the biggest loser in the Sensex pack, falling 2.28 per cent. It was followed by Maruti Suzuki, UltraTech Cement, Tata Motors, ICICI Bank, Bajaj Finserv and Axis Bank which cracked up to 2.04 per cent.
Sun Pharma led the gainers’ chart with a rise of 1.67 per cent.
Siddhartha Khemka, head — retail research, Motilal Oswal Financial Services, said that Covid-related sectors such as pharma and diagnostics were in the limelight in Wednesday’s session and are expected to maintain their momentum.
“On the other hand, sectors such as travel and tourism, hotels, airlines, entertainment, and retail may witness some pressure. Given the concern over the resurgence of pandemic once again along with recessionary fear, we expect market volatility to continue,” he observed.
Provisional data from the markets showed that foreign portfolio investors (FPIs) were net sellers to the tune of Rs 1,100 crore on Wednesday.
