Sensex and Nifty closed over 1% lower each on Monday amid investors' concern over the mounting Covid-19 cases globally and a spike in crude prices.
Tracking losses from Asian equities, the Sensex closed 469 points lower at 30,690 and Nifty lost 118 points to 8,993.
"After a decent recovery in the past few sessions, the Indian markets were back in the red, led by weak global cues and extension of lockdown till April 30th announced by several states," said Ajit Mishra, VP - Research, Religare Broking.
All indices in Asia turned red, with Nikkei and Kospi dropping 2% after the OPEC+ decided to cut 20% global supply of oil to curb fall in price amid virus outbreak.
Tokyo was down 0.5%, while Shanghai fell 0.5% and Singapore closed flat. Hong Kong, Sydney and Wellington remained shut for a public holiday. European markets were also closed.
Vinod Nair, Head of Research at Geojit Financial Services said, "Inspite of the hope that infections are peaking out in Europe, Indian markets closed negative with virus infections seen to be increasing in some regions of India. The Indian markets are awaiting the decision of the government regarding the current lockdown. The government is expected to announce a plan for a staggered withdrawal from the lockdown. Any continuation of the lockdown in its current form will put further pressure on economic growth and corporate earnings and will have a negative impact on the markets."
Sector-wise, Nifty pharma index remained in positive territory, settling 2.77% higher, while metal index gained 1.9%. In the last one month, pharma sector has risen over 13%, followed by 3.2% rise in FMCG. Nifty pharma has risen 10.87% since the beginning of 2020.
All other sectors ended in red. Realty fell the most by 5%, followed by 3.5% decline in media, financial sectors. Banking indices dropped over 2% each followed by 1.5% decline in FMCG.
Pharma stocks continued to move higher despite today's broader bearish session, with Cipla (2%), Biocon (4.5%), DRL (6%), FDC (2.37%) hitting their respective 52-week highs.
S Ranganathan, Head of Research at LKP Securities said, "Market closed lower as Autos and Financials dragged indices ahead of the PM's address tomorrow morning. The day witnessed value-buying in cement & infrastructure stocks while accumulation was also seen across a range of Midcap stocks in the Pharmaceutical space".
Asian stocks reversed the trend to bearish territory in early trade on Monday with investors cautious on news of an international 'historic" output deal to cut oil production by nearly 10 million barrels per day from May to prop up oil prices hammered by the coronavirus crisis and a Russia-Saudi price war . Crude prices rose by 3% to $32 per barrel.
On Thursday, US and European key barometers closed in green over prospects of more government stimulus amid tightened lockdowns across the world to combat the virus spread.
On the currency front, Indian rupee opened weak at the interbank foreign exchange on Monday and fell 15 paise to 76.43 against the US dollar, tracking weakness from domestic equity indices amid sharp rise in coronavirus cases in the country. It later closed almost flat, gaining 2 paise to 76.27 mark per dollar.
According to experts, prevailing uncertain market conditions amid the rising cases of the virus and extension of the lockdown period has caused volatility and led to the downfall of broader markets on a global scale.
There are 18.53 lakh confirmed cases worldwide and almost 1.14 lakh deaths from the coronavirus COVID-19 outbreak.
India has recorded a total of 9,152 cases, 308 deaths after 35 new fatalities were reported and 764 recoveries. In the last one week, cases confirmed in India have doubled to 9,000 mark, while total cases increased by 909 in the last 24 hours.
Meanwhile, PM Modi will address the nation at 10 am on April 14 amid the virus outbreak. Most states requested the Prime Minister to extend the lockdown for 2 more weeks.
Ajit Mishra, VP - Research, Religare Broking said," The market has seen a decent run-up recently led by rising hopes of the stimulus package from the government amid positive global cues. And, now the Prime Minister's speech, which is scheduled tomorrow at 10 am, would also be actively tracked for the roadmap to fight the coronavirus and measures to kick-start the economic activities. Besides, we shall be seeing the participants reacting to the CPI number in early trade on Wednesday i.e. April 15. Needless to say, volatility will remain high in the coming sessions too and traders have no option but to align their positions accordingly.
Last Thursday, the 30-share BSE Sensex closed 1,265 points higher at 31,159 and 50-share barometer NSE Nifty ended 363 points higher at 9,111.
Sensex and Nifty have fallen 1.3% in one day, 9.82% in last one month and 26% since the start of the year. Contrary to this, the indices have gained over 11% in last week's trade.
BSE and NSE will be closed tomorrow on April 14, 2020, on account of Dr Baba Saheb Ambedkar Jayanti.
Rupee vs Dollar: Rupee falls 15 paise to 76.43 amid weakness in equity market