Sensex slides 1.8% as ongoing COVID wave rattles investors

Darkening horizon: With authorities considering more curbs, market volatility has increased, say analysts.   | Photo Credit: PAUL NORONHA

Benchmark stock indices slid 1.8% on Monday as the rapid spread of COVID-19 infections and gathering local restrictions to check the current wave in various States intensified investor concerns about the economic fallout.

The S&P BSE Sensex fell 882.61 points, or 1.8%, to settle at 47,949.42. The slide was led by PSU and banking stocks. The NSE Nifty 50 index slid 1.77%, to 14,359.45.

With the Centre and States considering additional restrictions to contain the pandemic, market volatility has increased, said analysts.

The scarcity of vaccines, Remdesivir, oxygen and hospital beds have only added to the concerns.

“The economic impact of the current rise in COVID-19 cases will be significant in the short term as it will lead to lockdowns across many States in the country,” said Naveen Kulkarni, chief investment officer, Axis Securities.

He said while many industries like travel, tourism, restaurants and hotels would experience a significant impact, IT, pharma, metals, telecom and consumer staples would be less vulnerable and provide support.

Rupee weakens

“Discretionary consumption will be the most impacted,” he added.

The rupee weakened by 52 paise to close at 74.87 against the dollar, amid fears foreign investors may eye the exits.

“Going forward, the COVID-19 situation and the pace of vaccinations would be a key monitorable, said Ajit Mishra, VP, research, Religare Broking Ltd..”

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Printable version | May 15, 2021 2:29:40 AM |

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