Sensex up and down 1,300 pts in Covid-19
Mumbai: The stock market witnessed extreme volatility on Monday with the sensex oscillating almost 1,300 intraday points before closing 153 points lower at the close of trade. The rupee was also under pressure, closing 55 countries lower at 72.73 after two new cases came to light in India during market hours.
The sensex rallied 786 points at first as most of the Asian markets opened in the green on anticipation of a coordinated easing by central banks worldwide. However, as more cases of the virus got reported globally, European markets opened weak.
Closing down for the seventh consecutive session, the sensex ended at 38,144, dragged down by bank stocks, metals and FMCG. Top losers were SBI, Tata Steel, Hero MotoCorp, Bajaj Auto, ONGC and IndusInd bank. The broader Nifty of the also shed more than 400 points from its day’s high and closed lower by 69 points, or 0.62%, at 11,133.
In the forex market, the rupee reversed its initial earnings to settle sharply at 72.73 against the dollar for fear of foreign funds leaving the market. While foreign institutional investors were net sellers of shares worth Rs 1,354 crore, Indian institutional investors bought shares worth Rs 1,138 crore.
European stock markets also closed weak. The FTSE 100 of Great Britain fell 0.2%, while the CAC 40 in Paris decreased 1.2%. Germany's DAX made it worse than its counterparts, falling 1.3% to 11,735. Tuesday's opening will be influenced by Asian markets. US markets UU. They traded in green with the Dow Jones index up 2.5% in the first operations.
According to a Sanctum Wealth Management report, the response to Covid-19 will naturally be a key determinant of the pace of growth recovery. If an economy as large as China, 16% of world GDP, is almost stagnant for more than a month, global growth will be affected, although the extent of the disruption is difficult to estimate, the report said. Initial revisions have reduced 10-30 basis points (100 bp = 1 percentage point) of global GDP growth by 2020, but one should expect more revisions to the number as more data flows, the report adds.