Market's 10-day winning streak ends as Sensex plunges over 1,000 points; Nifty below 11,700
New Delhi | Jagran Business Desk: The BSE Sensex on Thursday plunged over 1,000 points or 2.61 per cent to close at 39,728.41 while the Nifty fell by 290.60 points or 2.43 per cent to end at 11,680.40, breaking stock market's 10-day winning streak, amid weak global markets and selling seen in the IT, banking and pharma sectors.
The worst affected companies were Bajaj Finance, Tech Mahindra, HCL Tech, Bharti Airtel, Infosys, IndusInd Bank, ICICI Bank and SBI which were trading between 2.60 per cent and 3.76 per cent lower. Meanwhile, Tata Steel, Hero MotoCorp, JSW Steel, Hindalco, Asian Paints and Coal India Hero MotoCorp were the top gainers as their shares surged by over 1.15 per cent.
Analysts believe that there were several factors which led to the loss at Dalaal Street on Thursday. They say that the rising coronavirus cases in Europe and the tensions between the trade war between the US and China were among several reasons behind the stock market's loss on Thursday.
"The worry is that banks had run up too sharply in the past 15 days and we are seeing some amount of profit booking and correction because no one really knows what the actual impact on NPAs (non-performing assets) is from COVID-19," said Umesh Mehta, head of research at Samco Securities, was quoted as saying by Reuters.
The experts also believe that "China's fresh rhetoric on war" can be another reason that the traders took their eyes off the rally on Thursday. However, they said that a lot of "surprises are expected" in the stock market with Diwali around the corner.
"The ongoing volatility is characteristic to bull markets. The psychological mark of 12,000 has obviously attracted some (portfolio) realignment and we have seen the defensive sectors like IT and pharma in the red today," NDTV quoted Anand James, chief market strategist at Kochi-based Geojit Financial Services, as saying.
Meanwhile, the Supreme Court on Wednesday set its hearing on waiving interest on loans under moratorium to November 2, saying any delay in implementing a waiver on "interest on interest" on loans is not in the interest of common man.
With this, the banks are hoping that the apex court will not offer any more reprieve to borrowers beyond the waiver on interest for loans up to Rs 2 crore, which the government has agreed to pay.
Posted By: Aalok Sensharma