BSE barometer Sensex dropped 2.01 per cent or 581.28 points to close at 28,288.23 today, while its NSE counterpart Nifty fell 2.42 per cent or 205.35 points to close at 8,263.45 today. Earlier in the day, the Nifty had declined 636 points to touch 7,833. For the Sensex, only 7 stocks ended in the green today, while for the Nifty 10 stocks could close with gains. The broader market was worse, with BSE Midcap and BSE Smallcap dropping 3.70 per cent and 4.53 per cent respectively. All sectoral indices, barring BSE Telecom, closed lower.
Nifty has been in a secular downtrend, as investors are fleeing equities in droves amid a rise in the number of coronavirus cases, threatening a collapse of many businesses. The index had briefly entered the positive territory today but could not hold on to the gains, tracking weakness in US stock futures. Amid the uncertainty in the market, cash has emerged as king as all asset classes, as even gold has seen sharp falls. Investors are racing to preserve their capital and are cashing out their investments.
NSE Nifty started the session on a negative note on the back of sharp selloff in global bourses. The index breached the 8,000 mark in initial trades and hit December 2016 lows (demonetisation correction). However, the 50-stock pack witnessed tremendous recovery of more than 700 points from the intraday lows, and thus filled today's gap area. In the process, the index formed a bullish candle on the daily chart. As of now, there is no sign of reversal, and thus ongoing fall may accelerate towards 7,900 and then 7,500. However, some consolidation can come, provided the Nifty sustains above the 7,830 mark for at least next couple of days.