After starting on a promising note, the benchmark indices slipped into the negative territory and ended with around a per cent loss on Wednesday as worries over economic downturn due to the extension of the nationwide lockdown weighed on the investor sentiment. Additionally, IMF’s statement on Tuesday that the global economy faces the worst recession since the Great Depression in the 1930s due to the raging coronavirus pandemic also dented the investor confidence.
The S&P BSE Sensex slipped 310 points or 1 per cent to settle at 30,380 levels. The index hit a high of 31,568.36 levels during the day.
HDFC Bank, Reliance Industries (RIL), HDFC, and Bajaj Finance contributed the most to the index’s fall. On the contrary, FMCG bellwether Hindustan Unilever (HUL) ended as the top gainer – up 6 per cent.
On the NSE, the frontline index Nifty shed 68.55 points or 0.76 per cent to 8,925.30 levels. India VIX, the volatility index, fell around 4 per cent to 49.4025 levels.
Sectorally, Nifty Bank declined over 2 per cent to 19,057 levels while Nifty Financial Services index dropped 2.75 per cent to 9,239 levels.
On the other hand, Nifty Realty index gained nearly 2 per cent to 180 levels.
Among individual stocks, Bharti Airtel became the fifth most valuable listed company in terms of market capitalisation (m-cap) after the stock surged 16 per cent in the past three days on expectation of good Q4 earnings. The telecom service provider has surpassed mortgage lender Housing Development Finance Corporation (HDFC). The stock ended 0.29 per cent lower at Rs 510 apiece. READ MORE
Shares of Metropolis Healthcare slumped as much as 14 per cent to Rs 1,152 on the BSE on Wednesday after more than 13 per cent of the company’s equity changed hands via block deals in early morning trade. The stick closed at Rs 1,258.95, down over 6 per cent. READ MORE
Shares of Motherson Sumi Systems (MSS) advanced 15 per cent to Rs 72.60 on the BSE on Wednesday after the company’s board gave in-principle approval to raise Rs 1,000 crore to enhance liquidity during the uncertain times of coronavirus pandemic (Covid-19). READ MORE
Global share markets dipped into the red on Wednesday as warnings of the worst global recession since the 1930s underlined the economic damage done during the coronavirus panemdic even as some countries try to re-open for business.
MSCI’s All-Country World Index, which tracks shares across 49 countries, was 0.37 per cent down.
European stock markets opened lower, with the pan-European STOXX 600 index opening 0.8 per cent lower after five previous days of gains.
In the United States, E-Mini futures for the S&P 500 fell 0.5 per cent, following a 3 per cent rise in New York.
In commodity market, oil fell 4 per cent towards $28 a barrel on Wednesday, pressured by reports of persistent oversupply and collapsing demand due to global coronavirus-related lockdowns and a lack of coordinated oil purchases for strategic storage.