Sensex Drops Over 700 Points As Selloff Across Sectors Deepens

Domestic stock markets slumped nearly 2 per cent on Thursday amid a broad-based selloff, as a series of…
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Domestic stock markets slumped nearly 2 per cent on Thursday amid a broad-based selloff, as a series of warnings from the US central bank officials about a recovery from the coronavirus pandemic hurt investor sentiment globally. The S&P BSE Sensex index tanked as much as 1.98 per cent – or 743.98 points – to 36,924.44 during the session, and the broader NSE Nifty 50 benchmark tumbled to as low as 10,916.05, down 1.94 per cent – or 215.8 points – from its previous close.

Here are 10 things to know about the markets today:

the Sensex traded 749.02 points – or 1.99 per cent – lower at 36,919.40, while the Nifty was down 222.10 points – or 2.00 per cent – at 10,909.75. 

Bajaj Finance, Tata Motors, Mahindra & Mahindra, IndusInd Bank, TCS and Tata Steel, trading between 4.07 per cent and 5.12 per cent lower, were the worst hit among 47 laggards in the 50-scrip Nifty index.

Tata Consultancy Services, Reliance Industries and Infosys were the biggest drags on Sensex, together accounting for nearly 300 points in the fall in the index.

TCS shares fell as much as 3.53 per cent to ₹ 2,376.40 apiece on the BSE, extending losses to a second straight day, after Shapoorji Pallonji group – the largest minority shareholder in Tata Group – said on Tuesday it wanted to separate interests from the autos-to-steel conglomerate.

Oil and Natural Gas Corp (ONGC) shares declined 3.25 per cent to ₹ 65.45 at the weakest level of the day, after a fire broke out at its Hazira gas processing plant in Gujarat on Thursday morning, which was later brought under control.

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Concerns about a delayed recovery from the damage caused by the coronavirus pandemic shook investors, according to analysts.

Equities in other Asian markets fell following a slump on Wall Street overnight, with MSCI’s broadest index of Asia Pacific shares outside Japan last seen trading 2.01 per cent lower. Japan’s Nikkei 225 benchmark was down 1.12 per cent.

The E-Mini S&P 500 futures traded 0.54 per cent lower, indicating a negative start for Wall Street on Thursday, a day after the US benchmark index tumbled 2.37 per cent after data showing cooling US business activity and the stalemate in Congress over more fiscal stimulus heightened concerns about recovery in the world’s largest economy.

Federal Reserve Vice Chair Richard Clarida said on Wednesday that the US economy remains in a “deep hole” of joblessness and weak demand, and called for more fiscal stimulus, noting that policymakers “are not even going to begin thinking” about raising interest rates until inflation hits 2 per cent.

Cleveland Federal Reserve Bank President Loretta Mester echoed similar views, saying that the US remains in a “deep hole, regardless of the comeback we’ve seen”.

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