New Delhi | Jagran Business Desk: The Sensex and Nifty on Monday plummeted nearly 6 per cent after the country entered the third phase of the coronavirus lockdown. Equity benchmark Sensex nosedived over 2,000 points (5.94 per cent) to close at 31,715.35 while Nifty fell by 566.40 points (5.74 per cent) to close at 9293.50 points.  

The ICICI Bank was the top loser in the Sensex pack and it slipped nearly 11 per cent while Bajaj Finance, HDFC, IndusInd Bank, Axis Bank, Maruti, Tata Steel and Tech Mahindra also suffered losses. Apart from the pharma industries, all all other sectoral indices ended in the red while 567 shares advanced, 1,817 shares declined, and 179 shares were unchanged. 

Earlier in the day, the Sensex plummeted over 1,500 points while the NSE Nifty plunged 425.70 points to 9,434.20 in opening trade dragged by selloff in index-heavyweights HDFC twins, ICICI Bank, TCS and Infosys amid negative cues from global markets.

Reliance Industries share fell over two per cent after the oil-to-telecom conglomerate on Thursday posted its biggest ever drop in quarterly net profit. Its net profit in January-March slipped 37 per cent to Rs 6,546 crore, the lowest in three years.

Meanwhile, Silver Lake - one of the world's largest tech investors - agreed to invest Rs 5,655.75 crore to buy a 1.15 per cent stake in Jio Platforms. Bharti Airtel and Sun Pharma were the gainers in the BSE index.

According to Narendra Solanki, Head- Equity Research (Fundamental) at Anand Rathi, the domestic markets opened lower taking negative cues from its global peers in Asia.

Claims by the US with regard COVID-19 sparked fears of a renewed trade war and fresh tussle with China over its role in the pandemic spread.

Although the major markets in Japan and China were closed for holidays, stocks in other Asian markets fell as tensions between the US and China weighed on investor sentiment, Solanki said.

Bourses in Hong Kong and Seoul were plunged up to 4 per cent, while stock exchanges in Europe opened with significant losses.

Back home, sentiments also remained downbeat after the country's manufacturing activity growth declined sharply in the month of April 2020, amid national lockdown restrictions to help stem the spread of coronavirus infections, he added.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago.

According to analysts, the market has realised that the cascading effect of the extended restrictions on the domestic economy and corporate earnings is much more than anticipated.

The government on Friday extended the nationwide lockdown till May 17.

Meanwhile, the rupee depreciated by 64 paise to provisionally settle at 75.73 against the US dollar. International oil benchmark Brent crude futures were trading 2.95 per cent lower at USD 25.66 per barrel.

(With PTI inputs)

Posted By: Aalok Sensharma