Sensex drops by 1,400 points, Nifty slips below 14,500 amid fears over 2nd wave of COVID-19
New Delhi | Jagran News Desk: The Indian indices opened on weaker note on Monday as the 30-share BSE Sensex plunged by more than 1,400 points or 2.88 per cent to open at 48,164.32 amid fears over second wave of coronavirus pandemic. Similarly, the Nifty plummeted by 431.90 points or 2.91 per cent to open 14,402.95.
Top losers in the Sensex pack were the State Bank of India, Bajaj Auto, Titan, ICICI Bank, Bajaj Finserv and Bajaj Finance whose shares fell by nearly eight percent. On the other hand, Infosys Divi's Labs and Dr Reddy's Labs were among the gainers.
The investors have blamed the dire COVID-19 situation in the country, especially in Maharashtra where media reports suggest that a lockdown might be imposed to control the pandemic, behind Monday's bloodbath at the market.
"Since the second wave of the pandemic is turning out worse than expected, there is profound uncertainty about its impact on the economy and markets, news agency PTI quoted V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, as saying.
The Reserve Bank of India (RBI), meanwhile, had announced that it will keep the repo rate and reverse repo rate unchanged at 4 per cent and 3.35 per cent respectively, bringing a simile on the faces of the investors amid fears over the second wave of COVID-19 pandemic.
Noting that the COVID-19 situation has created uncertainty over economic growth recovery, the RBI said that it will do whatever it takes to sustain the fledgeling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy.
"More importantly, the government reiterating the plus-minus 2 per cent of 4 per cent inflation targeting gives us enough policy space to support growth as there are more downside risks to growth on the horizon now than in recent past which make growth...of paramount importance," said RBI Governor Shaktikanta Das last week.
Meanwhile, elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were in the red in mid-session deals on Monday, while Seoul was trading with mild gains. On the other hand, international oil benchmark Brent crude was trading 0.05 per cent higher at USD 62.98 per barrel.
Posted By: Aalok Sensharma