Sensex falls 800 points as Covid cases surge globally

Mumbai, Sep 21 (IANS) The Indian stock market plunged on Monday, tracking a global selloff due to a fresh spurt of coronavirus cases across Europe.

The BSE Sensex plunged over 800 points and the Nifty50 closed below the 11,300 mark as the resurgence in Covid cases has also given fuel to anticipation of renewed lockdown restrictions across countries in Europe, including the UK and France.

The BSE Sensex closed at 38,034.14, lower by 811.68 points, or 2.09 per cent, from the previous close of 38,845.82.

The Nifty50 on the National Stock Exchange (NSE) settled at 11,222.20, lower by 282.75 point, or 2.46 per cent, from its previous close.

The across-the-board selloff was led by auto, telecom, metal and FMCG stocks.

Manish Hathiramani, technical analyst with Deen Dayal Investments, said: “The markets have broken the support of 11,300 on a closing basis and this is definitely an alarming situation. We could drop to 10,950-11,000 levels as the fall today has been fierce and on the back of good volumes.”

“The resistance on the upside is at 11,550-11,600. Until then the markets look weak,” he added.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, said that the global cues were negative at the start of the day with lofty valuations, fading US stimulus and fresh wave of coronavirus infections in Europe being major risks.

“In the US, attention is turning back to negotiations on fresh stimulus and the forthcoming election. Further, European markets fell after a report on bank allegations and signs that London is heading for a second lockdown,” he added.

On the domestic front, weak global cues and profit booking ahead of the monthly F&O expiry this week dragged the market, Khemka said.

Analysts said that going forward, the market would continue with its cautiousness as investors would keep a close watch on the rising Covid cases and delay in US stimulus.

–IANS

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