Indian Markets Nosedive in Opening Trade as Spike in COVID-19 Cases Continues

New Delhi (Sputnik): The COVID-19 pandemic has hit the Indian equity markets very badly. From the pre-COVID-19 levels of over 41,000 in late February, the benchmark index, Sensex slumped to 25,983 levels on March 23. The rise in March levels has remained choppy.

Indian equities slumped in early trading on Tuesday due to the rising COVID-19 infection numbers. The Bombay Stock Exchange’s 30-share index Sensex fell 600 points to trade at 30,910. Similarly, the broader national stock exchange’ 50 share index lost 140 points to trade at 9,098 in early trading this morning.  

Market participants blame the fall on the rising number of Covid-19 cases throughout the country and the resulting uncertainty in the economy.

Banking and auto stocks led the fall in the Indian equity markets today. While the banking index, Bankex, was the biggest sectoral loser, prominent banking shares like the State Bank of India, HDFC, Axis Bank, ICICI Bank were also trading in the red. The Indian auto sector reported zero sales in the month of April, owing to the COVID-19 lockdown which was clamped across the country on 25 March as a preventive measure against the contagious virus.

Indian Prime Minister Narendra Modi first announced a 21-day lockdown beginning 25 March, which has now been extended till 17 May. Even though a number of relaxations have been announced and the Indian government has also started passenger train operations on selective routes, there is a lot of uncertainty regarding lifting the lockdown.

Prime Minister Modi held a marathon meeting with the state chiefs on Monday regarding the lockdown. According to India’s Ministry of Health and Family Welfare, confirmed COVID-19 cases have mounted to 70,756, with 3,604 additions in the last 24 hours.

Sourse: sputniknews.com