Equity benchmark Sensex tumbled over 400 points in early trade on 5 April, dragged by losses in index majors HDFC twins, ICICI Bank and Reliance Industries despite a positive trend in global markets. The 30-share BSE index was trading 434.90 points or 0.87% lower at 49,594.93, and the broader NSE Nifty dropped 109.35 points or 0.74% to 14,758.
IndusInd Bank was the top laggard in the Sensex pack, shedding over 3 percent, followed by Bajaj Finance, Axis Bank, SBI, Bajaj Auto, Bajaj Finserv, ICICI Bank, HDFC twins, and Reliance Industries.
On the other hand, Infosys, HCL Tech, Tech Mahindra, TCS, and Bharti Airtel were among the gainers.
In the previous session on 1 April, Sensex ended 520.68 points or 1.05% higher at 50,029.83, and Nifty rose 176.65 points or 1.2% to settle at 14,867.35.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 149.41 crore on 1 April, as per exchange.
Financial markets were closed on 2 April, for ‘Good Friday’.
Domestic equities do not look to be inspiring at the moment. A sharp spike in coronavirus cases in the country and resultant restrictions are likely to dent investors’ sentiments in the near term, said Binod Modi, Head – Strategy at Reliance Securities.
“Imposition of weekend lockdown in Maharashtra, which contributes over 13% of the country’s GDP and nearly 20% of India’s industrial output, does not augur well,” he said.
“In our view, since the second wave started only towards the end of March, and as the economy normalised rapidly in January and February, the second wave is unlikely to have a major impact on Q1 GDP growth, and our estimate of 1.0% on-year appears reasonable,” the report said.
Elsewhere in Asia, bourses in Seoul and Tokyo were trading on a positive note in mid-session deals. Markets in Shanghai, Hong Kong, and Australia were closed for holidays.
Meanwhile, the global oil benchmark Brent crude was trading 0.89% lower at $ 64.28 per barrel.