New Delhi: Indian equity benchmarks – Sensex and Nifty 50 – suffered major losses on Friday, tracking a sell-off in global markets amid concerns about a fresh Covid-19 pandemic that dented investor confidence.
The BSE Sensex fell 1,680 points to 57,107 on Friday, while the NSE Nifty lost 509 points to end at 17,026.
The stocks saw their biggest intra-day fall since April 12, 2021, and their biggest weekly decline since January 29, 2021.
Reliance Industries, HDFC, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Infosys and State Bank of India were the top gainers on the Sensex.
Of the 30 Sensex packs, only two stocks – Nestle and Dr Reddy’s – ended in the green.
Investors lost Rs 6.50 lakh crore in just two hours of trading session due to the fall in the stock market on Friday.
Investors’ wealth fell by Rs 6.55 lakh crore to Rs 259.11 lakh crore from Rs 265.66 lakh crore a day earlier, according to data measured by BSE market capitalization.
Major benchmark indices witnessed sharp losses as Sensex and Nifty fell by 2.87 per cent and 2.91 per cent respectively.
The Indian market remained negative on the back of weak global cues. Shares fell sharply as the new COVID version (b.1.1.529), also known as the South African version, shook investors’ spines. Therefore, except the pharma sector in the domestic market, no sector is trading in the green.
Indian stock markets have been falling for the last two weeks, but the news of the new Kovid version has added to the crisis. The European Union has banned flights from South Africa.
In view of the increasing cases of Kovid in many European countries, lockdown has already been imposed.
According to media reports, aberrant mutations in the B1.1529 variant lead to mutations that could potentially mean higher transmissibility and the ability to evade the vaccine. Scientists are equally concerned, and are talking about it as a potentially ‘next delta’ variant.
Meanwhile, Asian stocks suffered their sharpest fall in two months on Friday, after the detection of a new and possibly vaccine-resistant coronavirus variant pointed investors to the safety of bonds, the yen and the dollar.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3 per cent, the sharpest decline since September. Casino and beverage stocks sold off in Hong Kong, and travel stocks declined in Sydney.
A new mutation of the coronavirus that threatens the recovery made so far gives bears enough ammunition to send benchmark indices up on Friday morning. According to scientists, the variant found in South Africa may be able to evade the immune response. British officials think it is the most important version ever, worry that it may oppose vaccines and have hurried to impose a travel ban on South Africa.
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