Amidst high volatility, equity markets on Thursday skid by over 1.5% as rising number of COVID-19 cases caused concern about economic revival. The indices fell for the second consecutive session..
The S&P BSE Sensex plunged 740 points, or 1.51%, to close at 48,440 following broad based selling pressure.
The NSE NIFTY 50 index, too, dropped 224.50 points, or 1.54%, to 14,325.
Analysts said the increased rate of infections across the country and the world has caused more pessimism in the market which only worsened with monthly expiry on Thursday.
“After the stellar rally, the market was on a consolidation stage during the last one month, which amplified post the sudden rise in infections, impacting future economic growth,” said Vinod Nair, head of research, Geojit Financial Services.
“The economic fallout in India from the reduction in world GDP growth is likely to be marginal. A fall in the rate of infections through tougher restrictions and pace in vaccination may quickly stabilise the market,” he added.
