Stock markets fall leaves investors poorer by nearly Rs 4 lakh crore

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Investor wealth on Monday eroded by Rs 3.81 lakh crore as the equity markets witnessed massive selloff, extending their fall for the fifth straight session. The 30-share Sensex closed 1,145.44 points, 2.25%, down at 49744.32. On the other hand, the 50-share NSE Nifty index settled 306.05 points, or 2.04%, lower at 14,675.70. 

The market capitalisation of the BSE-listed firms declined to Rs 200.17 lakh crore from Rs 203.98 lakh crore on Friday.

As many as 27 stocks in the Sensex pack ended in the red with Dr Reddy’s Lab falling the most 4.77%. It was followed by Mahindra & Mahindra (down 4.51%), Tech Mahindra (down 4.42%) and IndusInd Bank (down 4.25%). On the other hand, ONGC, HDFC Bank and Kotak Mahindra Bank gained 1.14%, 0.64% and 0.23%, respectively.

Barring the BSE Metal index (up 2.24%), other sectoral indices on the exchange ended in the red. The BSE Energy and IT index declined by 2.92% and 2.52%, respectively.

Commenting on the fall, Vinod Nair, Head of Research, Geojit Financial Services said, “Rising economic restrictions from spike in virus cases and weak global cues hit the domestic market sentiment. The rate of market fall was aggravated by a sharp rise in volatility, being a monthly F&O expiry week. FPI inflows which were leading the rally slowed down due to global vulnerabilities from rising bond yield and inflation.”

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.192% as compared to its previous close of 6.132%.

In the foreign exchange market, the partially convertible rupee rose to 72.4125, compared with its previous closing of 72.65

MCX Gold futures for 5 April 2021 settlement added 0.57% to Rs 46,462.

The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, gained 0.2% to 90.55.

In the commodities market, Brent crude for April 2021 settlement rose 45 cents to $63.36 a barrel.

Stocks in Spotlight:

Larsen & Toubro (L&T) fell 3.47% to Rs 1455.55. The power transmission & distribution business of L&T has won a slew of orders across its spectrum of offerings. According the company’s classification, the value of ‘large’ orders lies between Rs 2,500 crore and Rs 5,000 crore.

Vivimed Labs surged 11.45% to Rs 16.55. The company received approval for a product from Uzbekistan Government for its PICS & Health Canada approved site, both facilities are situated at Hyderabad.

Sheela Foam fell 1.96% to Rs 2020.40 after the company said it received an order on 18 February 2021 to close its Jalpaiguri plant from the West Bengal Pollution Control Board.