Indian markets ended sharply lower on Monday on rising Covid-19 fears across the country. Banking, financials, auto and FMCG stocks traded lower however, IT and metals buck the trend.
At the close, the benchmark 30-share index, BSE Sensex lost 870.51 points or 1.74% at 49,159.32 with 22 components posting drop. Meanwhile, the broad based NSE Nifty went down by 229.55 points or 1.54% at 14,637.80 with 39 components registering drop.
HDFC Bank contributed fall of 97.85 points in the Sensex. It was followed by State Bank Of India (84.97 points), Larsen & Toubro (70.04 points), Reliance Industries (60.22 points) and Mahindra & Mahindra (52.49 points).
However, Infosys contributed rise of 60.85 points in the Sensex. It was followed by Tata Consultancy Services (59.84 points), Bharti Airtel (16.88 points), Tata Steel (3.27 points).
Biggest gainers in the 30-share index were HCL Technologies (3.08%), Tata Consultancy Services (2.32%), Infosys (1.79%), Bharti Airtel (1.40%), Tech Mahindra (0.55%), and Tata Steel (0.53%).
On the other hand, Bajaj Finance (5.81%), Indusind Bank (5.64%), State Bank Of India (4.56%), Mahindra & Mahindra (4.17%), Axis Bank (3.93%), and ICICI Bank (3.84%) were the biggest losers in the Sensex.
Market breadth was negative with 1,058 advances against 1,898 declines.
Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services, said, 'Over the weekend the cases crossed 1 lakh mark in nation. Of this, 80% cases are in Maharashtra where 2nd lockdown has been put in place till April 30, though it’s not a complete lockdown.
Market over the next few days would monitor as to how the situation pans out in Maharashtra and also in other states especially 8-10 other states where the covid cases is rising rampantly.
Apart from this, the Q4 numbers would start pouring in from mid-April with Infosys and Wipro being among the first ones to declare. We are expecting strong 4QFY21 numbers for the IT sector and expect robust FY22 outlook from the management despite cost pressures.
Overall, we believe IT and Metals to fare better in comparison to other sectors given the cost pressures faced during the Q4. Thus, the month of April is likely to be highly volatile with Q4 earnings, rising covid cases and higher bond yields to determine the trend.'
