The Indian stock market slumped on Monday with the BSE Sensex falling over 1,700 points amid rising cases of COVID-19 and localised lockdowns. India reported 1,68,912 new Covid-19 cases in the last 24 hours, as per health ministry data. With this, India has once again taken its spot as the second-worst hit nation in terms of infections after the US.
Along with the surging cases, the subdued trend in the Asian markets also weighed on the Indian indices. Around 12.45 pm, Sensex was trading at 47,991.24, lower by 1,600.08 points or 3.23% from its previous close of 49,591.32.
It opened at 48,956.65 and has so far recorded an intra-day high of 48,956.65 and a low of 47,779.71 points.
In early trade it plummeted over 1,400 points, tracking losses in index-heavyweights HDFC twins, ICICI Bank and Reliance Industries as spiking COVID-19 cases in the country spooked investors amid negative cues from global markets.
The Nifty50 on the National Stock Exchange was trading at 14,343.10, lower by 491.75 points or 3.31% from its previous close. It opened at 14,644.65 points, touched a high of 14,652.50 and a low of 14,283.55 points.
In the previous session, Sensex had settled 154.89 points or 0.31% lower at 49,591.32, and Nifty slipped 38.95 points or 0.26% to 14,834.85.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 653.51 crore on Friday, according to provisional exchange data.
"Since the second wave of the pandemic is turning out worse than expected, there is profound uncertainty about its impact on the economy and markets, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The situation is the worst in economically significant Maharashtra. This can impact the market's assumption of around 11% GDP growth and above 30% earnings growth, he added.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were in the red in mid-session deals, while Seoul was trading with mild gains. Meanwhile, international oil benchmark Brent crude was trading 0.05% higher at $62.98 per barrel.
With inputs from agencies