2 COVID-19 Reasons Behind Today's Bloodbath in Nifty and BSE Sensex!

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2 COVID-19 Reasons Behind Today's Bloodbath in Nifty and BSE Sensex!

By Aditya Raghunath

Investing.com -- Nifty and the BSE Sensex witnessed a massive sell-off as the number of COVID cases in the country continued to rise at record levels. India recorded over 1.7 lakh cases on Sunday.

Nifty closed down 3.53% at 14,310, just 10 points shy of breaking the 14,300 resistance level. If the market breaks this level in the coming trading sessions, the next resistance level is at 13,900. The Sensex closed down 3.44% or 1,708 points at 47,883. The two major fallouts that caused markets to crash today are:

  1. Fears of renewed lockdown: Maharashtra, India’s richest state and home of financial capital Mumbai, has been talking about a complete lockdown again. There are fears that other states might also follow suit. Clearly, the sell-off in the markets indicates that the impact of the second wave could be greater than the first one. As more businesses get locked down, sentiment will only get worse. Auto, banks, and tourism and hospitality stocks were hit the worst today.
  2. Weak rupee: The rupee fell to Rs 75.15 against the dollar today, the lowest it has been since July 2020. A weak rupee signals heavy selling by FIIs (foreign institutional investors) and higher inflation. FIIs have been net sellers in April so far as fears of COVID continue to rise.

Top losers on Nifty today were Tata Motors Ltd (NS: TAMO ) (down 9.65%), Adani Ports and Special Economic Zone Ltd Future (down 8.94%), IndusInd Bank Ltd. (NS: INBK ) (down 8.57%) and Bajaj Finance Ltd (NS: BJFN ) (down 7.25%). Nifty Bank fell 5.1% today while the Nifty Auto index fell 5.11%.

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  • dharish shiriyannavar @dharish shiriyannavar
    looks like more Bloodbath in the way. Nifty Bank looking at 27000 mark
    Like 0
  • gopala krishna @gopala krishna
    nifty will open +150 points tomorrow
    Like 4
  • Gaurav Sharma @Gaurav Sharma
    Correct time to go short before lockdown is announced on Wednesday
    Like 2
  • Gaurav Sharma @Gaurav Sharma
    Correct time to go short before lockdown is announced on Wednesday
    Like 1
  • Alok Gupta @Alok Gupta
    very good opportunity to buy share and get good return , don't panic for sell your share buy share every fall
    Like 3
  • satyabrata nayak @satyabrata nayak
    this is correct time to buy...
    Like 3
  • satyabrata nayak @satyabrata nayak
    nifty will bounce back....
    Like 2
    • gopala krishna @gopala krishna
      @satyabrata nayak what can you expect tomorrow
      Like 0

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  • Waheguru S @Waheguru S
    Super bounce expected again
    Like 1
  • Waheguru S @Waheguru S
    Super bounce expected again
    Like 2
  • Aditya Goenka @Aditya Goenka
    Bhalu diwas
    Like 7
    • Aniket Kachare @Aniket Kachare
      @Aditya Goenka unlikely
      Like 0

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  • BALWANT RAWAT @BALWANT RAWAT
    would love to see another drop like 2020
    Like 7
  • Tanmay Patil @Tanmay Patil
    Pawri
    Like 3
  • Siddharth Kumar @Siddharth Kumar
    nifty 13900
    Like 0
  • Sushanth Amin @Sushanth Amin
    More Bloodbath in the way. Nifty Bank looking at 30,000 mark
    Like 10

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