Domestic stock markets tumbled nearly 2 per cent on Monday amid rising COVID-19 cases In the country and overseas. The S&P BSE Sensex index fell as much as 1.83 per cent – or 688.88 points – to 36,918.01 during the session, and the broader NSE Nifty 50 benchmark dropped as much as 1.68 per cent – or 185.6 points – to 10,887.85. A selloff In banking and financial services shares pulled the markets lower; however, gains In pharma and metal counters limited the fall.
The Sensex ended 667.29 points – or 1.77 per cent – lower at 36,939.60, and the Nifty settled at 10,896.75, down 176.70 points – or 1.60 per cent – from its previous close, extending losses to a fourth straight session.
The Sensex had shed 886.06 points – or 2.30 per cent – and the Nifty declined 227.1 points – or 2.01 per cent – In past three consecutive sessions.
Financial stocks witnessed selling pressure In the day’s session. Bandhan Bank lost 10.5 per cent at Rs 308.75 on reports of a block deal on the counter. Bandhan Financial Holdings, the main shareholder of Bandhan Bank, was expected to sell 337.4 million shares or 20.95 per cent stake worth $1.4 billion (Rs 10,500 crore) In the bank through a block deal to meet RBI’s shareholding norms. Bandhan Financial Holdings held 60.95 per cent stake In the bank prior to the block deal.
Among other banking stocks, Kotak Bank, Axis Bank, ICICI Bank and IndusInd Bank shed upto 3 per cent each on the NSE. In the broader financial space, SBI Life, HDFC Life and ICICI Prudential Life shed 2.9-3.9 per cent each on the NSE.
On the other hand, select pharma and metal stocks attracted buying interest. In the metal space, Jindal Steel, Tata Steel and Hindustan Copper gained 1.2-3.9 per cent each, on the NSE. And In the pharma space, Alkem Lab, Torrent Pharma and Divi’s Lab gained 2.9-3.5 per cent each.
The NSE market breadth was marginally positive. Out of 2,197 stocks traded on the NSE, there were 998 advancing stocks as against 820 declines.