Analysts say the rising number of coronavirus cases across the globe and a weaker sentiment across global markets has pulled the domestic share markets down on Monday.
Domestic benchmark indices Sensex and Nifty started this week’s trading on a week footing, slipping 0.60% each on Monday morning. Sensex ended down 209 points after trimming some losses in the dying hours of the session. Nifty 50 ended just above the 10,300 mark. Analysts say the rising number of coronavirus cases across the globe and a weaker sentiment across global markets pulled the domestic share markets down. “Global stocks were quiet Monday with Asian markets in the red and Europe flat as the number of coronavirus cases around the globe exceeded 10 million and the epidemic fast-tracked in the United States,” said Deepak Jasani, Head Retail Research, HDFC Securities.
FII net sellers on Monday: Foreign institutional investors sold shares worth Rs 1,937 crore on June 29 while the domestic investors managed to place buy orders worth Rs 1,036 crore. FIIs have slowed their selling spree and even turned net buyers on occasions, after having sold equities worth Rs 1.1 lakh crore in the month of March.
Coronavirus cases continue to surge: Confirmed coronavirus cases in India have climbed up to 5.67 lakh while the count of recoveries is up 3.35 lakh and deaths recorded till yesterday stood at 16,904. The rising number of cases not just in India but globally is something that experts believe is reigniting fear among investors. “Surging coronavirus cases in India and around the world continued to dent market sentiments on fear of renewed restrictions, which could derail the economic recovery hopes. COVID cases in India crossed 5.5 lakh while it touched more than 10mn globally,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
Lockdown extension: Maharashtra and Tamil Nadu have extended their lockdown till July 31 as the number of cases continues to rise. State governments are expected to get tough again in areas where the spread of coronavirus has been severe.
Prime Minister Modi to address the nation: Prime Minister Narendra Modi will be addressing the nation at 4 PM today. Although the Prime Minister’s Office has not indicated what the Prime Minister will talk about, expectations range from issues such as the border standoff with China to India’s battle with coronavirus.
Global markets: US stock market was in the green with Dow Jones jumping 2.32% and S&P 500 up by 1.47%. Nikkei 225 was also trading with gains of 1.76% as Hang Seng gained 0.71%. SGX Nifty was also up 72 points hinting at a positive start for the domestic indices.