Markets falls as Covid-19 woes pile up

Mumbai: Equity benchmarks wilted under selling pressure on Friday as the steady stream of grim news surrounding the Covid-19 crisis in the country sapped risk appetite and raised concerns over the economic recovery forecasts.

A depreciating rupee, which slumped below the 75-mark versus the US dollar, and a negative trend in global equities added to the gloom, analysts said. After a volatile session, the 30-share BSE Sensex ended 202.22 points or 0.42 per cent lower at 47,878.45. Similarly, the broader NSE Nifty dropped 64.80 points or 0.45 per cent to close at 14,341.35.

M&M was the top loser among the Sensex constituents, skidding 2.63 per cent, followed by Dr Reddy's, Tech Mahindra, HUL, Bharti Airtel, ICICI Bank, Titan and Infosys. On the other hand, PowerGrid, NTPC, Axis Bank, IndusInd Bank, HDFC and Bajaj Finserv were among the gainers, climbing up to 3.51 per cent. During the holiday-truncated week, the Sensex slumped 953.58 points or 1.95 per cent, while the Nifty tanked 276.50 points or 1.89 per cent. According to Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities, Indian markets succumbed to FPI selling this week on account of the sharp rise in COVID-19 cases.

FPIs have remained net sellers this week with the rupee sustaining at 75 levels against the USD. "As India has become the epicentre of the virus resurgence, there is fear of potential earnings downgrades which could turn out to be higher in case of mid and small caps vis-à-vis the large caps. "Fresh lockdowns and restrictions being imposed by various state governments will impact demand and also business activity. The persistent rise in hard commodity prices is a threat which could weigh on margins of many manufacturing companies. Too many potential negatives have come together which could impact markets in the very near future," he said. India added a record over 3.32 lakh new coronavirus cases in a single day, taking the country's tally to 1,62,63,695, while active cases crossed the 24-lakh mark, according to the Union Health Ministry data updated on Friday.