A record 3.32 lakh fresh Covid-19 infections in the last 24 hours kept the markets in the red in India. Equity benchmark Sensex declined over 300 points in early trade on Friday amid concern that the pandemic may derail the economic recovery.
Worsening Covid crisis threatens to derail recovery; rupee slips 12 paise against dollar
A record 3.32 lakh fresh Covid-19 infections in the last 24 hours kept the markets in the red in India. Equity benchmark Sensex declined over 300 points in early trade on Friday amid concern that the pandemic may derail the economic recovery.
The 30-share BSE index was trading 316.81 points or 0.66 per cent lower at 47,763.86, while the broader NSE Nifty dropped 75.45 points or 0.52 per cent to 14,330.70. ICICI Bank was the top loser in the Sensex pack, shedding around 2 per cent, followed by HDFC twins, Bajaj Finance, HUL, SBI, M&M and Kotak Bank. On the other hand, PowerGrid, Asian Paints, Titan, HCL Tech, Dr Reddy’s and UltraTech Cement were among the gainers.
“Sharp rise in Covid-19 cases across the country and enhanced mobility restriction imposed by a number of states are expected to remain as key overhangs for the market,” says Binod Modi, Head of Strategy at Reliance Securities.
“This has started posing a threat to corporate earnings recovery,” he says, adding that the possibility of supply disruption and increased Covid-19 cases in the hinterland can further hurt the economic momentum.
India on Friday registered a record single-day rise of 3,32,730 new Coronavirus infections, which took the tally of Covid-19 cases to 1,62,63,695.
India’s active cases increased to 24,28,616, comprising 14.93 per cent of the total infections, while the national Covid-19 recovery rate dropped further to 83.92 per cent. Death toll increased to 1,86,920 with a record 2,263 new fatalities in the last 24 hours, says the Union health ministry.
The number of people who have recuperated from the disease has risen to 1,36, 48,159, while the case fatality rate has further dropped to 1.15 per cent, the ministry says.
The unabated rise in infections has battered the Indian currency heavily. The rupee slipped 12 paise to 75.06 against the US dollar in early trade on Friday.
In the global markets, US equities finished sharply lower on Thursday following news reports that President Joe Biden is likely to double the capital gains tax for wealthier individuals. Bourses in Shanghai, Hong Kong and Seoul were trading on a positive note in mid-session deals, while Tokyo was in the red.
The international oil benchmark Brent crude was trading 0.44 per cent higher at $65.69 per barrel.