NEW DELHI: Equity indices nosedived in morning trade on Monday with the benchmark BSE sensex falling over 750 points led by losses in bank stocks as the government extended the coronavirus induced nationwide lockdown to May 31.
The 30-share BSE index fell 753 points or 2.43 per cent to trade at 30,343; while the broader NSE Nifty was tarding 220 points or 2.41 per cent lower at 8,917.
Top laggards in the sensex pack included IndusInd Bank, ICICI Bank, Bajaj Finance, Axis Bank, Kotak Bank and SBI with their shares falling as much as 6.66 per cent.
Infosys and HCL Tech were the only gainers.
On NSE, Nifty Bank, Private Bank, PSU Bank dragged up to 5.22 per cent.
Doubts over the effectiveness of the fiscal stimulus package, extension of the nationwide lockdown and spike in COVID-19 cases in the country weighed on investor sentiment, traders said.
India on Sunday extended the nationwide lockdown to May 31, while easing some restrictions, but a ban on air travel and several public gatherings still remained.
The total tally of coronavirus infections in the country surged past 96,000, while deaths surpassed 3,000.
The government in its first four tranches of the stimulus package focussed on credit line to small businesses and new fund creations to be shouldered by banks and financial institutions with very little extra budget spending.
In the last set of measures, the finance minister announced plans to privatise PSUs in non-strategic sectors and suspend loan default-triggered bankruptcy filings for one year, and also gave a Rs 40,000 crore hike in allocation for the rural employment guarantee scheme to provide jobs to migrant workers.
“Now the market would again focus on global cues and may continue to remain under pressure. There is also fear of a second wave of pandemic spread and extended period of economic slowdown. Further, the earnings season so far suggest more volatility and disruption,” Siddhartha Khemka, head – Retail Research, Motilal Oswal Financial Services Ltd, told news agency PTI.
Last week, the sensex fell 544.97 points or 1.72 per cent.
Meanwhile, foreign portfolio investors (FPIs) offloaded equities worth Rs 2,388.04 crore in the capital market on Friday, provisional exchange data showed.
(With agency inputs)