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Sensex Plunges Over 550 Points Amid Broad-Based Selloff

Sensex Plunges Over 550 Points Amid Broad-Based Selloff

Stock Market Updates: A selloff across sectors weighed on the markets

Domestic stock markets registered sharp losses in afternoon trade on Wednesday, as global equities fell amid rising COVID-19 cases in the US and Europe. The S&P BSE Sensex index tanked 683.75 points - or 1.69 per cent - to 39,801.84 at the weakest level of the day, and the broader NSE Nifty 50 benchmark slumped to as low as 11,703.85, down 185.55 points - or 1.56 per cent - from its previous close. A selloff across sectors - led by banking, financial services and IT shares - weighed on the markets.

Here are 10 things to know about the markets today:

  1. At 2:26 pm, the Sensex traded 583.12 points - or 1.44 per cent - lower at 39,938.98, while the Nifty was down 151.90 points - or 1.28 per cent - at 11,737.50.

  2. IndusInd Bank, ICICI Bank, HDFC, State bank of India, HCL Tech and Tech Mahindra, trading between 2.79 per cent and 3.87 per cent lower, were the worst hit among 42 laggards in the Nifty basket of 50 shares. 

  3. On the other hand, Bharti Airtel, Hero MotoCorp and UPL - up 3.47 per cent, 2 per cent and 1.38 per cent respectively - were among the top Nifty gainers.

  4. HDFC, HDFC Bank, and ICICI Bank were the biggest drags on Sensex.

  5. European share markets started Wednesday's session sharply lower, with the United Kingdom's FTSE 100 index last seen trading 2.08 per cent lower in early trade. France's CAC 40 and Germany's DAX 30 indices traded 3.27 per cent and 3.11 per cent lower respectively at the time.   

  6. The US, Russia, France and other countries have registered record numbers of infections in recent days, and European governments have introduced new curbs to try to rein in the fast-growing outbreaks.

  7. Domestic investors are hoping the earnings momentum seen among the blue-chips will continue, said Vinod Nair, head of research at Geojit Financial Services. "The Nifty companies have managed their balance sheets well and margins have improved. The festival season will also help many Indian companies," he said.

  8. Bharti Airtel shares jumped as much as 10 per cent to Rs 476.30 apiece on the BSE, surging a day after the telecom major reported its highest quarterly revenue ever, boosted by higher tariffs and a rise in data usage from a coronavirus-fuelled shift to remote working.

  9. In other Asian markets, shares slipped amid increasing COVID-19 infections around the globe, while uncertainty over next week's US elections dampened investor sentiment. The E-Mini S&P 500 futures traded 1.39 per cent lower, indicating a sharply negative start for US stock markets later on Wednesday.  

  10. Data on Tuesday showed consumer confidence in the world's largest economy unexpectedly fell in October, although other economic figures were mostly positive, with orders for key capital goods hitting a six-year high.