The domestic stock market was lashed out on Monday. As a result, major indices closed with a major decline. The growing cases of corona in the country have led to disappointment in the market. Economic activity has stalled due to lockdown.
Growing cases of corona
The total number of coronavirus patients in India has gone up to 1,100. The chances of reaching the third stage have increased. According to the government, India currently has 942 active patients of Covid-19, while 27 people have died. About 100 patients have returned home.
Sales of companies stalled as sales of several companies have stalled near. Because of this, they are not getting income. They are avoiding payment by resorting to the ‘Act of God’ clause. A company like Hero MotoCorp has banned payments to its vendors.
Knock of recession
Many rating agencies have projected india’s growth rate to decline. According to ICRA, India’s growth rate may remain at 4.5 per month in April-June. It will be only 2 percent in 2020-21. India is hearing a bearish knock.
The Reserve Bank has also said that Corona will have an impact on the economy. The International Monetary Fund (IMF) has also said the Covid-19 epidemic will shock the global economy. Many countries may be vulnerable to recession.
According to NSDL, a foreign investor selling foreign investors in March, foreign investors sold Rs 1 lakh crore from the Indian market. He has purchased Rs 59,377 crore from the stock market. Foreign investors are constantly cashing in on ETF investments. Because of this, the Reserve Bank is also concerned.
The state of global markets is also a global decline in other Asian markets. Japan’s Nikkei fell 1.5 percent, while the Shanghai stock market also declined 1 percent. U.S. and European market’s futures were also in the red mark.
The BSE Sensex dived 1,375 points, or 4.61 per cent, to close at 28,440. The Nifty 50 index fell 379 points, or 4.38 percent, to 8,281. The BSE MidCap index registered a weakness of 2 per cent and the small-cap index by 2 percent.
Bajaj Finance shares dived 12 per cent to 12 per cent on the Nifty 50 index. Shares of HDFC, Kotak Mahindra Bank, HDFC Bank, Tata Steel, ICICI Bank, Eicher Motors, Maruti Suzuki, JSW Steel and Mahindra & Mahindra fell by 6 to 11 percent.
On the other hand, Cipla shares jumped 7 percent. In addition, Tech Mahindra, Nestle India, Dr. Shares of Reddy’s Labs, Axis Bank, Hindustan Unilever, GAIL (India), Titan Company, Coal India and Wipro closed with the highest growth.
On Monday, only pharma and FMCG indices registered a spurt. The pharma index climbed 1.25 per cent. Imami shares on the FMCG index fell by 5.5 percent. But the realty index fell 8 percent, the finance services index 7.5 percent and the private bank index by 6 percent. The auto index weakened by 5 percent.
Godrej Properties shares on the realty index dived up by 14 percent. Shriram Transport shares in finance services shares slipped by 17 percent. Shares of Bandhan Bank in private banks declined by 15 per cent. Bosch shares on the auto index fell 8 percent.
Shares of only nine companies on Monday achieved their 52-week high. In contrast, shares of 221 companies slipped to their 52-week low.
Nifty rose 12 shares green on the 50 indexes, while 38 shares ended trading with the red mark. Only six shares gained the lead on the Sensex, while 24 shares disappointed. 933 shares on BSE closed up and 1,348 shares were softened.
Stacy is the Hardware Editor at Get Ignite. She worked for a number of leading tech publications, including Engadget, PCMag, Laptop, and Tech Times, where she served as the Managing Editor. Her writing has appeared in Spin, Wired, Playboy, Entertainment Weekly, The Onion, Boing Boing, Publishers Weekly, The Daily Beast and various other publications. She hosts the weekly Boing Boing interview podcast RiYL, has appeared as a regular NPR contributor and shares her Queens apartment with a rabbit named Lucy.