Nifty Gives Up 10,350 As Financial, Energy IT Stocks Pull Markets Lower

Domestic stock markets fell on Monday as a jump in coronavirus cases across the world and at home stoked fears of renewed restrictions that could hit business activities, dimming hopes of a quick economic recovery. The S&P BSE Sensex index dropped as much as 1.27 per cent - or 448.06 points - to 34,723.21 during the session, and the broader NSE Nifty 50 benchmark declined to as low as 10,249.30 after a gap-down opening compared to its previous close of 10,383.00. Losses in banking, financial services and metal stocks dragged the markets lower, however gains in consumer goods and pharmaceutical shares arrested the fall.

The Sensex ended 209.75 points - or 0.60 per cent - lower at 34,961.52, and the Nifty settled at 10,312.40, down 70.60 points - or 0.68 per cent - from its previous close.

Shares in Mumbai-based Piramal Enterprises rose more than 3 per cent during the session, after the conglomerate said US-based investment firm Carlyle Group will purchase a 20 per cent stake in its pharmaceutical unit for around $490 million (Rs 3,706.36 crore at one rupee = $75.64). 

Cases in the country jumped by 19,459 to 5,48,318 as of Monday morning, with the number of deaths rising to 16,475, according to latest health ministry data.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.6 per cent on Monday morning, while Wall Street sharply retreated on Friday.

Globally, the number of deaths reached half a million people on Sunday, according to a tally by news agency Reuters.

"The economic reality is going to be on the downside, that's a given. Liquidity is the only support for global markets and that is the only hinge on which the markets are moving," said Mayuresh Joshi, head of equity research at William O'Neil & Co in India, adding that tensions with China following the recent border clashes were also a overhang on sentiment.

The Nifty 50 has recovered around 40 per cent from a four-year low hit in mid-March as foreign investors poured in money. However, the index is still down 15% for the year, compared with a 7 per cent drop for the MSCI Asia index.