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    Monday Mayhem! Investors lose Rs 4.58 lakh crore; top factors behind Sensex's 812-point crash

    Synopsis

    India VIX, the measure of fear in the market, jumped over 9 per cent to 21.86 reflecting the sentiments of the market community which expects heightened volatility in the market.

    Reuters
    European markets plunged in their opening trade, hurting the sentiments back home.

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    NEW DELHI: Surging virus cases in countries that seemingly had controlled the outbreak hit the market sentiments on Dalal Street with domestic equity indices racing to their third close in the red in as many days on Monday. Meanwhile, a selloff in global markets also aided the cause.

    The 30-share pack Sensex tanked 811.68 points or 2.09 per cent to 38,034. Its broader peer Nifty plunged 282.75 points or 2.46 per cent to 11,222.20. Investor lost Rs 4.58 lakh crore in the mayhem as m-cap of BSE-listed firms dropped to Rs 154.42 crore.

    India VIX, the measure of fear in the market, jumped over 13 per cent to 22.65 reflecting the sentiments of the market community which expects heightened volatility in the market.

    “Indian benchmark indices succumbed to profit booking in the second half of the trading day. It was in sync with global cues which turned negative following a surge in infections in various countries including in Europe. Additional restrictions were being considered in Europe following an increase in infections,” said Vinod Nair, Head of Research at Geojit Financial Services.

    Market at a glance:
    • Route Mobile lists at 105% premium but drifts lower to close at 86% above the issue price
    • Chemcon Speciality Chemicals IPO sails through, subscribed 4.33x so far
    • CAMS IPO sees 56 per cent subscription so far
    • All sectoral indices in the red, Nifty Realty biggest loser
    • Metals lose their sheen, Nifty Metal closes down nearly 6%
    • Despite the bloodbath on D-Street, 140 stocks hit 52-week highs: Dr Reddy’s, M&M, Mindtree, Laurus Labs and KPIT Tech among top names

    Here are key factors putting pressure on the market:


    Surging virus cases
    Europe, which to an extent, had controlled the pandemic, is seeing a resurgence of the virus, which spooked investors across the globe. European countries including Denmark, Greece and Spain have introduced new restrictions on activity.

    Britain is considering a second national lockdown as new cases rise by at least 6,000 per day. Germany's health minister said the rising new infections in countries like France, Austria and the Netherlands is worrying.

    Meanwhile, India is also adding nearly 1 lakh cases every day.

    Global sell-off
    European stocks fell the most since July as investors worried about tighter virus restrictions and a report detailing suspicious transactions at international banks. S&P 500 equity futures sank 1.8%, indicating US stocks are poised to extend three weeks of losses, Bloomberg reported. Political tensions also made traders nervous as Republicans and Democrats prepare to fight over who will be the next Supreme Court justice.

    UK’s FTSE was the biggest loser, down 3.16 per cent followed by France’s CAC that was down 2.76 per cent and Germany’s DAX that plunged 2.85 per cent. US futures too traded nearly 2 per cent lower.

    Tensions at LAC
    Indian and Chinese military are still positioned in forward positions ready to block each other’s moves, which is keeping tensions at the border high. Multiple rounds of diplomatic and military-level talk have resulted in no solution, making the market nervous.

    Fed members to speak
    Investors also refrained from buying ahead of Congressional hearings during which Fed members are likely to speak. Seven members of the Fed will speak this week - including chairman Jerome Powell appearing before Congressional committees - so investors will be looking for hints to determine the dollar's direction.

    What happened in market
    Kotak Mahindra Bank, Infosys and TCS were a few gainers among the largecap stocks. On the other hand Hindalco, IndusInd Bank, Tata Motors, Bharti Airtel, JSW Steel and Tata Steel were among the top losers, plunging 5-9 per cent.
    Gainer and loser snip 1Agencies
    Top NSE gainers & losers
    Market breadth was heavily tilted in favour of the losers with just 595 stocks ending in the green while 2,165 names closed with cuts. Some of the biggest losers in the broader market space were Indiabulls Housing Finance, Jindal Steel, Indiabulls Real Estate, IFB, PTC India and Birla Corporation that slipped between 8-14 per cent.

    On the other hand, IIFL Wealth Management, Astrazeneca, Supreme Industries and Tata Elxsi were few of the gainers that advanced more than a per cent each.

    Broader markets also lost their glamour after a week of superb rally. Nifty Smallcap dropped 4.17 per cent and Nifty Midcap fell 4.06 per cent. Nifty500, the broadest index on NSE, was down 2.86 per cent.

    Nifty Realty was the biggest sectoral loser, down 5.98 per cent followed by Nifty Metal that plunged 5.53 per cent. Nifty Pharma, Nifty Media and Nifty Auto were among other top losers. All indices closed the day in red.

    Let’s prepare for tomorrow:
    • Angel Broking IPO: The IPO of the brokerage house will open for subscription tomorrow.
    • Sebi Chair address: Sebi chairman Ajay Tyagi is scheduled to address AMFI Members at their 25th Annual General Meeting at 11 am.
    • US markets: Traders will keep an eye on movement in US markets as that will provide a cue how D-St behaves on Tuesday.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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    17 Comments on this Story

    Shri 33 days ago
    there is 350 trillion debt bubbles all over World. most currencies are overprinted paper. global depression is here for next decade. cheers
    Shri 33 days ago
    stock markets including wall Street are bubbles looking to crash. lose 50% or more. good to deflate. cheersð ».
    Subeer.V.S33 days ago
    We are going to March lows.
    People are afraid from investing.
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