Market turns red snapping seven day uptrend
The Sensex plunged to the 1,407 mark on Monday amid panic over new strain of the Covid-19 pandemic in Britain. The perception of local markets was also severely affected by the continued sell-off in global markets. The 30-share BSE Sensex fell by 1,406.73 points or three per cent to 45,553.96 points. Similarly, the National Stock Exchange’s Nifty also lost 432 points, or 3.14 percent, to close at 13,328.40 points.
All the Sensex stocks were in the red. ONGC shares fell nearly nine percent. IndusInd Bank, Mahindra & Mahindra, ABCI, NTPC, ITC, Axis Bank and PowerGrid also lost up to seven per cent. Vinod Modi, Head-Strategy, Reliance Securities, said that there was tremendous selling pressure in the domestic stock markets. About 7,000 billion rupees of investors’ capital sank in a single day.
He said investors’ perceptions were affected globally amid renewed concern about Covid-19 in the UK and doubts over Covid-19 vaccines.
Several European countries, including France, Germany, Netherlands, Belgium, Austria and Italy have banned flights from the UK. The British government has warned that the new type of virus is ‘uncontrollable’. The UK has imposed a strict lockdown in London and other areas since Sunday. India has also postponed flights from the UK from 23 to 31 December.
Hang Seng in Hong Kong and Nikki in Japan declined in other Asian markets. At the same time, Shanghai Composite of China and Kospi of South Korea recorded slight gains. The international benchmark Brent crude oil futures fell 5.30 percent to 49.49 per dollar.
