By Sachin Ravikumar
BENGALURU, April 5 (Reuters) - Indian shares tumbled and the rupee weakened on Monday as daily coronavirus infections reached a record high and fresh curbs were imposed in the financial capital of Mumbai, sparking worries about the pace of the country's economic recovery.
India's coronavirus caseload jumped by more than 100,000 to surpass 12.5 million on Monday, while the death toll crossed 165,000. Maharashtra state, home to Mumbai, imposed stringent curbs including a complete lockdown on weekends. NSE Nifty 50 index .NSEI dropped 2.27% to 14,530.55 by 0450 GMT, while the S&P BSE Sensex .BSESN slid 2.37% to 48,843.65.
"The market had run up on the back of the opening up of the economy, and the resultant increase in demand. That entire story is again at risk," said Siddharth Khemka, head of retail research at Motilal Oswal (NS: MOFS ) Securities in Mumbai.
"The concern, from a market perspective, is that the virus is spreading so fast and people will not be able to work, and business and profitability will be impacted."
Indian bond yields were little changed following the largely-in-line borrowing calendar and as traders await the central bank's monetary policy decision on Wednesday.
The benchmark 10-year bond yield IN058530G=CC was at 6.17%, down one basis point from its previous close.
The partially convertible rupee INR=IN , however, weakened sharply as it tracked a fall in the domestic stock market on worries over surging COVID-19 cases. It was trading at 73.40/41 per dollar versus its previous close of 73.1050.
Software services stocks — among the best performers during most of the pandemic in 2020 — were the only stocks that gained. The Nifty IT services index .NIFTYIT was up 0.37%, with Infosys INFY.NS and Wipro WIPR.NS rising 1% each.
($1 = 73.3410 Indian rupees)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.