Record jump in the Covid-19 cases in the country is the major factor to the market crash today
Published On: Monday, April 5, 2021 | By: Team KnowMyStock
The BSE barometer Sensex tanked 870 points or 1.74 percent to settle at 49,159 today(5th April 2021). The 30-pack index had declined as much as 1,449 points in intra-day trade to a low of 48,581. Banks, financials, Reliance Industries, and ITC were among the top Sensex drags. Meanwhile, NSE's flagship index Nifty50 shut shop at 14,638, down 230 points or 1.54 percent. The index had plummeted to 14,460 in intra-day today. A record jump in the Covid-19 cases in the country which led to lockdown-like restrictions in the economically important state of Maharashtra spooked market investors today. Besides, a weak macroeconomic print added fuel to the fire, further raising concerns about the pace and strength of the economic recovery.
Investors found some solace in firm global cues that helped contain further downside for the market.The selling in the market was mostly broad-based, with only stocks from the information technology (IT) and metals sector managing to hold their head above water while the PSU bank stocks were the worst hit. The volatility index shot up over 6 per cent to 21.21 level.
"Over the next few days, markets would monitor as to how the Covid situation pans out in Maharashtra and also in other states, especially the ones where the cases is rising rampantly. April is likely to be highly volatile for the markets with Q4 earnings, rising Covid cases and higher bond yields among the factors that are likely to determine the trend," say experts.
Tags: Marketcrash Sensex Nifty
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