Key indices plunge on renewed virus fears

Equity benchmark Sensex slumped 486 points on Thursday, largely in tandem with a global selloff as rising cases of the Covid-19 Delta variant in multiple countries and hawkish comments from the US Federal Reserve spooked investors.

The 30-share BSE index ended 485.82 points or 0.92 per cent lower at 52,568.94, while the broader NSE Nifty dropped 151.75 points or 0.96 per cent to 15,727.90.

"Pessimistic global cues dented the morale of Dalal Street with selling pressure seen across the sectors amid high volatility. Global markets were deep in the red, shadowing a weakness in the Asian markets following the widening Chinese tech crackdown and concerns over the country's economic recovery. As we kickstart Q1FY22 results season, initial releases of IT sector and a good number of lucrative IPOs will be in focus for the coming weeks," said Vinod Nair, head (research) at Geojit Financial Services. Binod Modi, head (research) at Reliance Securities, said: "Domestic equities witnessed sharp correction amid weak global cues. Hong Kong's Hang Seng index corrected by over 2.50 per cent as investors dumped Chinese tech giants led by mounting concerns about regulatory risk, he noted. Asian stock markets fell after the Federal Reserve talked about possibly reducing US economic stimulus and Japanese officials prepared to declare a coronavirus state of emergency during the Olympics due to a surge in infections."