The domestic benchmark indices nosedived in Monday’s session following a strong second wave of Covid-19 in the country, leaving the market bulls battered.
An across-the-board selling resulted in a 1,469 point crash in the BSE barometer Sensex, with financials and banking counters the worst hit. The index was last quoting at around 47,600 levels. Barring shares of Dr Reddy’s Labs, all constituents of the 30-pack index traded in the red.
The second wave of Covid-19 in India has cast a cloud over economic growth and earnings outlook going ahead, worrying investors. The domestic markets have moved in a linear manner over the past one year amid expectations of strong earnings growth in FY21 and FY22. Analysts believe any negative surprises on the earnings front can again derail the recovery.
Foreign Portfolio Investors (FPIs) who have pulled out a net Rs 4,615 crore from Indian markets in April so far. According to the depositories data, overseas investors pulled out Rs 4,643 crore from equities but invested Rs 28 crore in the debt segment. If they turn net sellers in April, that would be the first monthly selling since September 2020. Sell-off by FPIs often leads to sharp market correction.
