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The NSE Nifty 50 ended 566.40 points - or 5.74 per cent - lower at 9,293.50 - its worst day since March 23 - whereas the S&P BSE Sensex settled at 31,715.35, down 2,002.27 points - or 5.94 per cent - compared to its previous close. The Nifty Bank index - comprising stocks of 12 major lenders in the country - closed 8.32 per cent lower, having plummeted as much as 8.78 per cent during the session.
In the 50-scrip Nifty basket, 47 shares closed lower. Top percentage losers were Hindalco, ICICI Bank, Vedanta, Bajaj Finance, HDFC and Tata Motors, ending between 9.87 per cent and 10.68 per cent lower. HDFC Bank (ending 7.86 per cent lower), HDFC (10.08 per cent) and ICICI Bank (10.96 per cent) alone accounted for a loss of 886.79 points in the Sensex.
Reliance Industries settled with a loss of 2.16 per cent at Rs 1,435.40 on the BSE, having fallen more than 3 per cent during the session, after the operator of the world's biggest refining complex reported a 39 per cent drop in its March quarter profit to Rs 6,348 crore - its steepest fall since December 2008 - on a sharp fall in oil prices and lower fuel demand, missing analysts' estimate.
On Monday, Reliance Industries said private equity firm Silver Lake will invest Rs 5,656 crore in its digital arm, Jio Platforms, days after securing a $5.7 billion investment from Facebook as the conglomerate looks to pare debt.
Market breadth was highly negative with an advance-decline ratio of 3:1, as 574 stocks rose for the day on the BSE against 1,841 that fell. Analysts say weakness in global markets along with weak earnings back home hurt investor sentiment.
"Hindustan Unilever Limited (HUL) reported de-growth in volumes. Auto companies are reporting zero sales and global sentiment is negative," Anita Gandhi, director at Arihant Capital Markets, told NDTV.
HUL shares closed 5.16 per cent lower at Rs 2,082.30. On Thursday, the fast-moving consumer goods major reported a 3.5 per cent fall in net profit to Rs 1,515 crore for the quarter ended March 31.
The domestic markets also tracked losses in global markets, where equities fell amid a spat between the US and China over the origin of the outbreak. While Japanese and Chinese markets remained shut for a holday on Monday, South Korea's KOSPI fell, Hong Kong's Hang Seng returned from a two-session holiday with a 3.5 per cent drop, but Australia's ASX 200 eked out a 0.5 per cent gain.
European shares started the day on a negative note, with the UK's FTSE benchmark index last seen down 0.42 per cent, while France's CAC and Germany's DAX indices were down 4.23 per cent and 3.60 per cent respectively.
US stock futures fell 1.7 per cent, indicating a weak start for Wall Street on Monday. US President Donald Trump and Secretary of State Mike Pompeo added to worries with fresh efforts to pin blame for the pandemic on China, where the new coronavirus outbreak is believed to have originated. The latest salvo came from Mr Pompeo on Sunday who said there was "a significant amount of evidence" that the virus emerged from a laboratory in the central Chinese city of Wuhan.
(With inputs from Reuters)