The Union Health Ministry’s statement on the surfacing of a ‘double- mutant variant’ COVID-19 in most parts of the country and fears of fresh restrictions and economic slowdown spooked the stock markets with the benchmark indices crashing by more than 1.7% each on broad-based selling.
The S&P BSE Sensex plunged 871 points, or 1.74%, to end the day at 49,180. As many as 28 of the 30 Sensex stocks ended in the red. The sell-off off was led by banking, metal, auto, financial services and IT stocks.
The NSE Nifty 50 index also shed 265.35 points, or 1.79%, closing at 14,549.
ADVERTISEMENT
Bears took charge at the bourses as weak global cues combined with the news of a new mutant of the COVID-19 in India spooked participants, said Ajit Mishra, VP, research, Religare Broking Ltd.
“The broader markets witnessed sell-off as both mid-cap and small-cap ended with losses of 1.7% and 1.6% respectively. On the sector front, all indices ended in the red wherein metal, auto and banking were the top losers,” he added.
He said indications are there will be a further slide with volatility remaining high on account of the scheduled expiry of March contracts. “We reiterate our bearish yet cautious view and suggest maintaining positions on both sides,” Mr. Mishra said.
ADVERTISEMENT
“In Wednesday’s correction, the sell-off was witnessed across the board and hence, further correction cannot be ruled out on the expiry day,” said Sameet Chavan, chief analyst-technical and derivatives, Angel Broking.
“We continue to remain cautious and advise against creating aggressive bets in the market for a while.”