Key indices crash on global selloff

Domestic equity benchmarks posted their biggest drop in more than two months on Monday as a selloff in global markets and lacklustre corporate results sapped risk appetite. A plunging rupee, which slumped 31 paise against the US dollar, also weighed on sentiment, traders said. The 30-share BSE Sensex tumbled 586.66 points or 1.10 per cent to close at 52,553.40. This was its biggest fall since April 30 this year. Similarly, the broader NSE Nifty slumped 171 points or 1.07 per cent to 15,752.40.

"Domestic equities fell sharply today on weak global cues as concerns over recent rise in fresh Covid-19 cases in various parts of the world including US weighed on sentiments. Financials have witnessed steeper correction today as sub-par performance delivered by HDFC Bank in 1Q FY22 and visible deterioration in asset quality created apprehension among investors about banks and NBFCs having exposure in retail and SME," said Binod Modi, head (strategy) at Reliance Securities.

Vinod Nair, head (research) at Geojit Financial Services, said: "Banks led the domestic downtrend as initial quarterly results pointed to cautious asset quality due to the impact of the second wave. Slackening economic growth in the US led to reports of likely downgrade in growth forecast in current year, triggering global selloff."

HDFC Bank was the top loser in the Sensex pack, skidding 3.34 per cent, after the country's largest private sector lender on Saturday posted a 14 per cent rise in Q1 net profit but also reported reverses on the asset quality front. IndusInd Bank, HDFC, Axis Bank, Maruti, Bajaj Finance and Kotak Bank were among the other major laggards, dropping up to 2.78 per cent. Only four Sensex constituents closed in the green -- NTPC, Nestle India, Dr Reddy's and Sun Pharma, rising up to 1.89 per cent. World stocks buckled under selling pressure as rising Covid-19 cases due to the Delta variant cast fresh doubts over the global economic recovery.