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Markets crash as rising Covid-19 cases threaten economic recovery

At today's closing, Sensex was down 1,707.94 (3.44 per cent) at 47,883.38, while Nifty fell 524.05 (3.53 per cent) to 14,310.80. The two indexes have now retreated 7 per cent-8 per cent each from their mid-February record highs.

UPDATED: April 12, 2021 17:41 IST

Domestic markets crash on Monday with benchmark indices S&P BSE Sensex and NSE Nifty 50 plunging sharply in view of rising Covid-19 cases in the country.

At today’s closing, Sensex was down 1,707.94 (3.44 per cent) at 47,883.38, while Nifty fell 524.05 (3.53 per cent) to 14,310.80. The two indexes have now retreated 7 per cent-8 per cent each from their mid-February record highs.

Domestic shares may witness weakness throughout the week as India continues to break all records in terms of daily cases. On Monday, India reported over 1.6 lakh Covid-19 cases.

Experts are worried that the sharp spike in cases could lead to stricter lockdown measures, which could severely impact lakhs of businesses. This could ultimately impact the country’s economic recovery.

Meanwhile, the rupee also weakened to a more than eight-month low of 75.1375 against the US dollar.

It may be noted that HDFC Bank and Reliance closed more than three per cent lower each during Monday’s session. They were the biggest drags on the Nifty 50.

Stocks across most industries declined, with financial and banking shares suffering the biggest blow. Banks were under pressure during today’s market session as the Nifty PSU Bank index plunged over 9 per cent.

The Nifty Auto index was also down 5.11 per cent at closing. All other sectors also suffered losses except the pharma index, which saw limited losses. The Nifty Pharma index closed only 0.26 per cent lower.

On the brighter side, market participants are now waiting for the start of the corporate earnings season. It is likely to provide a slight boost to the market. TCS is expected to announce its results later in the day. Investors are also likely to keep a keen eye on March retail inflation data, which is expected later in the day.

Sourcehttps://www.indiatoday.in/business/story/markets-crash-as-rising-covid-19-cases-threatens-economic-recovery-1790092-2021-04-12

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