Sensex crashes 1,069 pts; bank, auto stocks among worst hit

Mumbai:  Benchmark Sensex crashed 1,069 points on Monday tracking massive selloffs in banking and auto stocks as government’s fiscal stimulus package failed to revive confidence in domestic investors.

The 30-share BSE index ended 1,068.75 points or 3.44 per cent lower at 30,028.98, while the broader NSE Nifty plunged 313.60 points or 3.43 per cent to 8,823.25.

IndusInd Bank was the top laggard in the Sensex pack, cracking around 10 per cent, followed by HDFC, Maruti Suzuki, Axis Bank and UltraTech Cement.

On the other hand, TCS, Infosys, ITC and HCL Tech closed with gains.

Traders and investors remained on edge as the Home Ministry extended the lockdown for another two weeks till May 31 to contain the spread of coronavirus, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.

The relief package announcements appeared falling short of meeting market expectations on any demand side reforms, triggering an intense selloff in the domestic market, he noted.

The government, in its first four tranches of the stimulus package, focussed on credit line to small businesses and new fund creations to be shouldered by banks and financial institutions with very little extra budget spending.

In the last set of measures, the centre on Sunday announced plans to privatise PSUs in non-strategic sectors and suspend loan default-triggered bankruptcy filings for one year, and also gave a Rs 40,000-crore hike in allocation for the rural employment guarantee scheme to provide jobs to migrant workers.

The domestic market started off the week on a negative note despite positive cues from global market peers as global economies across the world continue to lift lockdown restrictions, allowing more businesses to cautiously open, Solanki said.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note, while those in Europe were trading significantly higher in early deals.

International oil benchmark Brent crude futures surged 4.55 per cent to USD 33.98 per barrel.

Globally, the number of cases linked to the disease has crossed 47.13 lakh and the death toll has topped 3.15 lakh.

The number of COVID-19 cases in India spiked to 96,169, while the death toll rose to 3,029, according to the health ministry.

On the currency front, the rupee provisionally settled 33 paise lower at 75.91 against the US dollar.

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