INDIA'S INDEXES DOWN
REUTERS - APRIL 12, 2021 - Indian shares plunged on Monday as COVID-19 cases continued to rise relentlessly and a hard-hit state considered a stricter lockdown, threatening to derail a recovery in Asia’s third-largest economy.
The NSE Nifty 50 index was down 2.44% at 14,474.10 by 0440 GMT, while the S&P BSE Sensex was 2.42% lower at 48,374.94. The two indexes have now retreated 6%-8% from their mid-February record highs.
The rupee continued its decline, falling to a near 8-month low of 74.96 against the dollar.
India on Monday reported another record daily surge in coronavirus cases, with the total now eclipsing Brazil’s tally. The state of Maharashtra, home to Mumbai, is considering a lockdown and could take a final decision this week, a senior government official said.
“The dollar index has surged significantly higher. On the other hand, with the kind of spike in domestic COVID-19 cases and lockdown concerns in several states, we are seeing significant outflows from domestic equities, and that’s weighing on the Indian rupee,” said Sugandha Sachdeva, vice president of currency research at Religare Broking in Noida.
Stocks across most industries declined, with financial shares being hit the hardest. HDFC Bank, Reliance Industries and ICICI Bank were the top three drags on the Nifty 50, each falling 3%-5%.
The state-run banks index was down 9% and on track for its worst day in more than a year.
Cipla and Dr Reddy’s, both sellers of COVID-19 medication, gained 3%-4% and were among the few gainers.
India’s corporate earnings season kicks off from Monday, with 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.
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