The Sensex plunged 812 points as the Nifty closed below 11,300 on Monday, alongside a global sell-off after a resurgence of COVID-19 cases in Europe fueled fears of another round of lockdowns.
Denmark, Greece and Spain have imposed new measures to tackle the spike in infections. Britain is also considering a second lockdown, prompting investors in Europe to get rid of travel, consumer and banking stocks.
Falling for the third session in a row, the BSE Sensex finished 811.68 points, or 2.09%, down to 38,034.14. The NSE Nifty fell 2.21% to 11,250.55. IndusInd Bank was the first loser in the Sensex pack, dropping 8.67%, followed by Bharti Airtel, Tata Steel, ICICI Bank, M&M, Maruti and Axis Bank.
The market capitalization of all companies listed on the BSE fell to ₹ 154.76 lakh crore, wiping ₹ 4.23 lakh crore from investors’ wealth.
“With high valuations and fears that earnings will not justify such valuations anytime soon, markets may be uncertain for now,” said Vinod Nair, research manager at Geojit Financial Services. “Be careful.”