Sensex sheds 586 points over Covid-19 surge in biggest drop since April 30

By Administrator_ India

Capital Sands

The benchmark indices on Monday declined along with Asian and European peers as investors were worried by the surge in Covid-19 cases and rising inflation. The benchmark Sensex fell 586 points to end the session at 52,553, a decline of 1.10 percent in the biggest single-day fall since April 30.

The Nifty tumbled 171 points to end the session at 15,752, a drop of 1.07 percent.

Safe-haven assets, including gold, rose amid risk-off sentiment among investors. The US bond yields were trading at their lowest since February 12 at 1.25 percent. The dollar strengthened against its major peers as sentiment turned cautious.

Analysts said global economic growth shows signs of fatigue as many countries, especially in Asia, are struggling to curb the highly contagious Delta variant. Many South Asian nations are struggling with worsening outbreaks amid a slow vaccine rollout.

Analysts said restrictions to curb the infection spread would hold back economic recovery, and there will be downward revisions to the gross domestic product growth for some economies.

Investors are also worried that inflation might force central banks to taper their monetary easing program sooner than expected.

However, US Federal Reserve Chairman Jerome Powell has assured that any inflation flare-up is expected to be transitory. And said the monetary policy support would continue for some more time.

The market breadth was positive, with 1,757 stocks advancing and 1,571 declining. Five hundred and twenty stocks hit their 52 weeks high, and 622 were locked on the upper circuit. All the sectoral indices barring four fell. Banking and Auto stocks fell the most, and their gauges fell 1.76 and 1.05 percent, respectively.

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