Only one constituent on the Sensex (Dr Reddy's Labs) and four on the Nifty (Dr Reddy's Labs, Cipla, Divis Labs, and Britannia) ended the day in the green. Among these, Dr Reddy's Labs ended 7% higher on the National Stock Exchange on report that the expert panel reviewing the company's application for approval to the Russian vaccine has recommended that approval be given to the vaccine. Now, the Drugs Controller General of India will consider this recommendation and decide whether to grant Sputnik V approval for restricted emergency use in India.
Among the losers on the Nifty were Tata Motors, Adani Ports, IndusInd Bank, Bajaj Finance, UPL, SBI, Hindalco, and Shree Cement, down in the range of 5.6 per cent to 10 per cent.
Shares of financial sector, including banks, NBFCs, and housing finance companies, along with automobiles and real estate companies were under pressure at the bourses, on Monday, falling up to 10 per cent, on the NSE on concerns of demand slowdown due to rising Covid-19 cases.
Among financials, RBL Bank, Bank of Baroda, Mahindra & Mahindra Financial Services, L&T Finance Holdings, Indian Overseas Bank, Shrirram Transport Finance, Punjab National Bank and IndusInd Bank slipped up to 9 per cent while DLF, Sobha, Godrej Properties and Indiabulls Real Estate from realty and Ashok Leyland, Tata Motors, Motherson Sumi Systems, and Bharat Forge from the automobiles fell between 5 per cent and 10 per cent.
By the time the markets
closed, the Nifty PSU Bank index plummeted 9 per cent, the Nifty Realty slipped 7 per cent, and the Nifty Bank, Private Bank, Metal, and Auto indices skidded between 5 per cent and 6 per cent.
Broader markets, on the other hand, faced an even severe blow with the S&P BSE MidCap and SmallCap indices dropping 5 per cent each.
Stocks sank on Monday as investors waited to see whether US earnings would justify sky-high valuations, while a rally in bonds could be tested by what should be strong readings for US inflation and retail sales this week.
MSCI’s All Country World Index was down 0.25 per cent and the pan-European STOXX 600 index was down 0.3 per cent.
The UK's FTSE mid 250 index slipped 0.6 per cent, Germany’s DAX slipped 0.1 per cent and France’s CAC 40 fell 0.2 per cent. Italy’s FTSE MIB was the sole gainer, up 0.05 per cent.
Earlier in Asia, Tokyo’s Nikkei edged down 0.6 per cent. South Korean stocks were near flat.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.