Market crashes due to new COVID strain in UK, investors lose Rs. 6.59 lakh crores

Investor wealth crashed by Rs 6.59 lakh crore on Monday as equities tanked after the UK reported a new strain of the Covid-19 virus.

“Brutal bloodbath witnessed in today’s session after a new coronavirus strain was found in Britain. Market extended losses in late afternoon session, tracking sell-off in the European markets amid concern of fresh travelling lockdown restrictions across countries.

“Uncertainties over the Brexit deal also dented the investors’ sentiments,” said Sumeet Bagadia, Executive Director, Choice Broking.

The Sensex ended 1,406.73 points, or 3.00 per cent, lower to close at 45,553.96, whereas the Nifty settled at 13,328.40, down 432.15 points, or 3.14 per cent, from its previous close — the worst single-day loss for both indices since May 4

All the 50 shares in the Nifty basket suffered losses. Tata Motors, ONGC, GAIL, IndusInd Bank, Hindalco, Indian Oil and Bharat Petroleum — closing between 7.21 per cent and 9.53 per cent lower — were the worst hit. 

Reliance Industries, ICICI Bank, HDFC Bank and HDFC were the biggest drags on Sensex. The four accounted for more than 500 points loss in the 30-scrip index.

In the broader market, the BSE mid-cap and small-cap indices tanked up to 4.57 per cent.

All BSE sectoral indices also closed lower, with metal, oil and gas, utilities, realty, basic materials, industrials, power and bankex falling as much as 6.05 per cent.  

At the BSE, 2,433 companies declined, while 592 advanced and 167 remained unchanged.