Sensex Plunges 661 Points On Rising COVID-19 Cases, US-China Tension

Mumbai, July 14: Equity benchmark Sensex Tuesday plunged 661 points dragged by losses in financial stocks amid sell-off in global markets.

After touching a low of 35,877.42, the 30-share BSE Sensex settled 660.63 points, or 1.80 per cent, lower at 36,033.06. 

NSE Nifty fell 195.35 points, or 1.81 per cent, to 10,607.35 level.

Shares of HDFC duo led the fall in the indices, shedding up to 2.94 per cent, following a probe into its auto lending practices. IndusInd Bank, Axis Bank, Maruti, Bajaj Finserv, PowerGrid and SBI were among the other major laggards; while Titan, Bharti Airtel and Bajaj Auto closed with gains.

S Ranganathan, Head (Research), LKP Securities, said, "Key indices corrected close to 2 per cent on weakness in financial and metal stocks. We witnessed profit booking in key auto stocks as their volume numbers are already known to the street for the first quarter."

According to traders, besides stock-specific actions, negative cues from global markets amid escalating US-China tension and rising COVID-19 cases dampened investor sentiment here.

Asserting that "Chinese predatory world view" had no place in the 21st century, the US on Monday categorically rejected the territorial claims made by Beijing in South China Sea, stating that it has no legal grounds to unilaterally impose its will on the region.

Further, COVID-19 cases around the world have crossed 1.30 crore. In India, the number of infections spiked to 9.06 lakh, according to the health ministry.

Meanwhile, Bourses in Shanghai, Hong Kong, Tokyo and Seoul closed with significant losses. Stock exchanges in Europe also began on a negative note.

International oil benchmark Brent crude futures fell 0.73 per cent to US dollar 42.41 per barrel.