Sensex, Nifty50 fall 1% as Covid-19 scare grips markets – Healthcare stocks surge while metals, banks and realty stocks tumble

• The possible resurgence of Covid-19 in the country spooked investors on Wednesday, with the benchmark indices Sensex and Nifty50 falling 1%.
• While the 30-stock Sensex lost 635 points to close at 61,067, the 50-stock Nifty50 closed 186 points lower at 18,199.
• Pharma stocks dominated the list of top gainers on the Nifty50 index, with the top five stocks all being from this sector.

Indian benchmark indices closed nearly 1% lower on Wednesday as rising Covid cases in China brought back worries of an economic slowdown. Most of the sectoral indices closed the day in the red, with metals, banks and realty stocks amongst the top losers.

While the 30-stock Sensex lost 635 points to close at 61,067, the 50-stock Nifty50 closed 186 points lower at 18,199.

All sectoral indices were in the red except information technology and pharmaceuticals. The Nifty IT index closed 0.53% higher while the Nifty Pharma index ended 2.39% higher.

The top five gainers on the Nifty50 index were all pharma stocks, as mounting concerns of Covid-19 resurgence pushed stocks of hospitals, pathology labs and select companies which make Covid-related drugs. This includes Divi’s Labs (4.88%), Cipla (3.51%), Apollo Hospitals (3.34%), Sun Pharmaceuticals (2.13%), and Dr. Reddy’s Laboratories (0.99%).

“Investors are also worried that mounting Covid cases in China may lead to further deterioration in global economic health prompting traders to cut their equity market exposure,” said Shrikant Chouhan, head of equity research (retail), Kotak Securities.

India VIX, an index that measures volatility in the markets, rose sharply by 12.94% to 15.56, indicating a rise in fear among investors. The Indian rupee closed the day marginally lower at 82.81 against the US dollar, with a decline of 5 paise.

Meanwhile, minutes of the Reserve Bank of India’s three-day monetary policy committee meeting are expected to be released later today.

Foreign institutional investors (FII) were net sellers on Wednesday, pulling out ₹1,119 crore while domestic institutional investors (DII) were net buyers, pumping ₹1,757 crore.

Government steps up vigilance against Covid-19
Earlier in the day, Union Health Minister Mansukh Mandaviya chaired a meeting with experts and health officials to discuss the Covid-19 situation in the country. In an advisory later, the central government advised people to mask up once again in crowded areas, while clarifying that there are no changes in international air travel guidelines yet.

“ln view of the sudden spurt of cases being witnessed in Japan, United States of America, Republic of Korea, Brazil and China, it is essential to gear up the whole genome sequencing of positive case samples to track the variants,” stated health secretary Rajesh Bhushan in a letter to all states.

Asian markets give mixed cues
Despite the rising concerns of Covid-19 in China, Asian markets were mixed on Wednesday. While Nikkei 225 lost the most with a 0.68% fall, it was followed by the Shanghai SE Composite Index, which fell 0.17%. However, the Taiwan SE Weighted Index gained 0.45%, while Hang Seng gained 0.34%.

In the US, the Dow Jones closed 0.28% higher on Tuesday and the tech-heavy Nasdaq Composite Index closed almost flat while the S&P 500 ended 0.10% higher.
Note: Nifty500 index

(With inputs from PTI)


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