Note: This is a developing story. As trading continues throughout the day, this story will be updated with the latest numbers.
New Delhi: Indian shares plunged on Monday amid a relentless surge in coronavirus cases and as the hardest-hit state of Maharashtra considers a lockdown, threatening to derail the economic recovery seen over the past five months.
At 10:34 am, the NSE Nifty 50 index was down 2.72% at 14,431.35, while the S&P BSE Sensex was 2.73%, or 1,352 points lower, at 48,238.68.
Meanwhile, the volatility index, India VIX, surged over 15% to 22.8 levels.
Stocks across most industries declined, with financial shares being hit the hardest. HDFC Bank and HDFC were the two biggest drags on the Nifty 50, falling early 3% each.
Maharashtra, which is home to India’s financial capital of Mumbai, is currently considering a lockdown and could take a final decision this week, a senior government official said.
On Sunday, Delhi chief minister Arvind Kejriwal also warned of a possible lockdown as the capital recorded a whopping 10,000 new infections.
Also read: India Reports 1.7 Lakh New Cases, Five States Report 10k Cases Each
“I feel that lockdown is not the solution to corona. [But] it should be imposed by any government when its hospital structure collapses. Through lockdown, the pace of the spread of disease reduces…,” Kejriwal said last night.
India’s corporate earnings season also kicks off from Monday,with software services firm Tata Consultancy Services expected to report March-quarter results.
Data on the country’s retail inflation for March is also expected later in the day. A Reuters poll of economists predicts that the reading likely edged up to a four-month high in March, led by higher food and fuel prices.
(With inputs from Reuters)
