Sensex plunges for third day on Covid headwinds

Mumbai, May 4

Market benchmark Sensex surrendered early gains to finish in the red for the third consecutive session on Tuesday following brisk selling in frontline stocks.

The grim Covid situation and continued selling by foreign funds has sapped risk appetite, traders said.

After a gap-up opening, the BSE index succumbed to profit-taking in afternoon trade to finish at 48,253.51, down 465.01 points. On similar lines, the Nifty slumped 137.65 points to close at 14,496.50.

Dr Reddy’s was the top loser among the Sensex constituents, retreating 2.26%, followed by Reliance Industries, Sun Pharma, HDFC twins, Infosys, M&M and Bharti Airtel.

On the other hand, ONGC, Bajaj Finance, TCS, SBI, Kotak Bank and Nestle India were among the gainers, climbing up to 1.86%.

“Indices lost a percentage on Tuesday as the street punished earnings disappointment in several high-quality midcaps. Afternoon trade witnessed profit-taking in metals and pharma names as the street exhibited nervousness on regional lockdowns which accentuated the weakness.

“In the broader market, paper stocks were sought after today on hardening pulp prices while coffee producers saw investor appetite,” said S Ranganathan, Head of Research at LKP Securities.

Binod Modi, Head Strategy at Reliance Securities, said the mounting uncertainty led by rise in second wave of Covid cases weighed on investor sentiment.

Sectorally, BSE healthcare, energy, telecom, consumer durables, auto and basic materials indices lost as much as 1.50%, while oil and gas, utilities and capital goods ended with gains.

Broader BSE midcap and smallcap indices fell up to 0.57%. — PTI

Dr Reddy’s top loser

• After a gap-up opening, the BSE index succumbed to profit-taking in afternoon trade to finish at 48,253.51, down 465.01 points
• On similar lines, the Nifty slumped 137.65 points to close at 14,496.50
• Dr Reddy’s was the top loser among the Sensex constituents, retreating 2.26%, followed by Reliance Industries, Sun Pharma, HDFC twins, Infosys, M&M and Bharti Airtel

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