NEW DELHI: Equity indices continued to fall for the fifth straight session on Monday with benchmark BSE sensex falling over 1,100 points, dragged by financial, banking and IT stocks .
The 30-share BSE index fell 1,145 points or 2.22 per cent to close at 49,744. While, the broader NSE Nifty settled 306 points or 2.04 per cent lower at 14,676.
Tech Mahindra, M&M, Dr Reddy, IndusInd Bank, Reliance, Axis Bank and TCS were the major losers in the sensex pack falling up to 4.85 per cent.
While ONGC, Kotak Bank and HDFC Bank were the only stock which finished in green.
On the NSE platform, except for Nifty Metal, all other sub-indices ended in red with Nifty Media, PSU Bank, Financial Services and IT falling up to 3.42 per cent.
“We’ve seen a correction in the market in the last few sessions. Some people still want to book profits because they are scared of the ongoing correction,” Neeraj Dewan, director at New Delhi-based Quantum Securities told news agency Reuters.
Here are the top reasons behind fall:
* Rising Covid cases
After months of steady nationwide decline, cases Covid-19 are witnessing a surge in some parts of the country.
The spike has been more prominent in Maharashtra where nearly 7,000 cases were detected in the last 24 hours.
Lockdowns have been reimposed in some parts of the state and authorities have banned all religious or cultural programs.
Maharashtra chief minister Uddhav Thackeray has warned people that failure to follow public health measures could result in a need for larger and stricter lockdowns.
Covid-19 cases have also been rising in Kerala since the last one month.
* US bond yield
Yields on the benchmark US 10-year Treasury notes rose to a one-year high, as falling infection rates, expectations of a stronger economic recovery and higher government borrowing in the United States dented their lustre.
The move sparked outflows in Indonesian 10-year bonds, generally favoured as a high-yield investment in the region, with yields rising to 6.708 per cent — the highest since mid-October.
Thailand’s 10-year bond yields jumped to 1.58 per cent, hitting their highest since early-April last year, while India’s benchmark bond yields hit their highest since late-August at 6.212%.
* Subdued global cues
Broader Asian stock markets were mixed as expectations for faster economic growth and inflation globally battered bonds and boosted commodities.
Benchmarks rose in Japan but fell in South Korea, Australia and China. Investors remain focused on the future of global economies badly hit by Covid-19 and when and whether there will be enough stimulus to fix it.
(With inputs from agencies)
