6 Reasons Why Sensex Plunged 883 Points Today

Indian share markets nosedived and registered sharp losses in today's volatile session following a strong second wave of COVID-19 in the country and the announcement of stricter lockdowns, hampering the economic recovery.

At the closing bell, the BSE Sensex stood lower by 883 points (down 1.8%).

Meanwhile, the NSE Nifty ended down by 258 points (down 1.8%).

Dr Reddy's Lab and Infosys were among the top gainers today.

IndusInd Bank and Power Grid, on the other hand, were among the top losers today.

SGX Nifty was trading at 14,384, down by 240 points, at the time of writing.

The BSE Mid cap index and the BSE Small cap index ended down by 1.9% and 1.6%, respectively.

On the sectoral front, capital goods stocks, banking stocks, and realty stocks were among the hardest hit.

Asian share markets ended on a positive note today, helped by expectations monetary policy will remain accommodative while COVID-19 vaccine rollouts helped ease fears of another dangerous wave of coronavirus infections.

The Shanghai Composite and the Hang Seng ended higher by 1.5% and 0.4%, respectively. The Nikkei ended on a flat note.

US stock futures are trading lower today with Dow Futures trading down by 83 points.

The rupee is trading at 74.87 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.9% at Rs 47,793 per 10 grams.

Here are the Top 6 Factors Why Indian Stock Markets Crashed Today

Spike in COVID-19 Cases: A sharp rise in COVID-19 cases are posing a serious threat to the economic recovery of the world. India has reported 2.7 lakh fresh COVID-19 cases in the last 24 hours - the biggest spike in daily cases witnessed since the pandemic began last year.

The Union Health Ministry said that the daily coronavirus positivity rate in India has doubled to 16.7% in the last 12 days.

Lockdown Fears: One of the key reasons behind today's weakness is the strict lockdown-like restrictions imposed in Maharashtra, home to a financial hub that contributes 14.5% of the country's overall GDP.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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