The prolonged lockdown
is expected to result in a 25 per cent drop in gross domestic product
from a year earlier for the current quarter, according to Bloomberg Economics.
After taking cues from the US in the morning, the market later started to come to terms with an extension of the lockdown, which has happened “without any economic or financial road map,” said Umesh Mehta, the Mumbai-based head of research at Samco Securities.
The Sensex surged 13 per cent last week after fewer virus cases were reported in some global hotspots. India currently has 11,555 confirmed cases and 396 deaths linked to the crisis.
The rupee weakened 0.2 per cent to 76.45 a dollar, while the 10-year bond yield dropped 7 basis points to 6.42 per cent. Eleven of the 19 sectoral indices compiled by the BSE rose, led by a gauge of fast-moving consumer goods companies. Eighteen Sensex shares fell, while 12 rose.
Hindustan Unilever contributed most to the index with a 6 per cent increase, HDFC Bank was the biggest drag, slipping 3.6 per cent, while Kotak Mahindra Bank was the biggest loser, dropping 6.2 per cent.