Sensex falls 740 points from day’s high, ends 81 points lower; banks top drags

Mumbai: Benchmark equity indices wiped off early gains on Monday, mirroring losses in European markets, and as investors feared a faster spread in new coronavirus cases with the infections already past the 67,000-mark in India.. The underlying tone of the market is likely to continue to be weak, as investors closely track the spread of Covid-19 infections. After having risen as much as 659 points in early trade, Sensex erased all the gains to close 81 points lower, dragged down by losses in financial stocks. Private lenders ICICI Bank, HDFC Bank and mortgage lender Housing Development Finance Corporation (HDFC) contributed the most to the benchmark’s losses. Shares of ICICI Bank dropped 5.23 per cent, after India’s second-largest private lender by assets, missed Street forecasts and posted a 26.03 per cent year-on-year (YoY) rise in standalone profit. Rivals HDFC Bank and HDFC shed 1.40 per cent and 1.82 per cent, respectively. “The negative impact was mainly due to financials, led by ICICI Bank, which missed earnings estimates. This closing was in spite of gains in Reliance, autos and IT,” said Vinod Nair, Head of Research at Geojit Financial Services “Globally, with countries talking about emerging from lockdown measures, there were also… Read full this story

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