Sensex dives 1,066 pts, investors lose Rs 3 L cr

The 30-share BSE index plummeted 1,066.33 points or 2.61 per cent to end at 39,728.41.

The broader NSE Nifty crashed 290.70 points or 2.43 per cent to 11,680.35.

Global equities cratered as hopes faded of a pre-election stimulus deal in the US, while multiple countries in Europe braced for a second round of lockdowns to curb rising COVID-19 cases, jeopardising the already shaky economic recovery.

Back home, market participants were also eager to book profits after the recent rally amid already stretched valuations, traders said. Barring Asian Paints, which inched up 0.32 per cent, all Sensex constituents closed in the red.

Bajaj Finance was the top loser, tumbling 4.68 per cent, followed by Tech Mahindra, IndusInd Bank, ICICI Bank, SBI, Reliance Industries, Bharti Airtel and HCL Tech. Investors lost Rs 3.25 lakh crore in 

Thursday’s session as the total market capitalisation of BSE-listed companies fell to Rs 157.31 lakh crore.

“The market had moved-up in expectation of a big stimulus, but the desired fiscal package was not announced in India and a delay of it in US and Euro has changed the trend. At the same time, the pace of economic recovery is under stress because of a resurgence of high rates of COVID infections...

“The margin of safety is low given premium prices and slowdown in economic recovery. The trend going forward will depend on the supportive measures announced in context to stimulus and commentary of Q2 results,” said Vinod Nair, Head, Research, Geojit Financial Services. All sectoral indices closed lower, with BSE telecom, bankex, energy, finance, tech and IT indices plunging as much as 3.54 pc.

The world is experiencing one of the deepest recessions since the Great Depression in the 1930s owing to the novel coronavirus, World Bank President David Malpass has said, terming the pandemic a 

“catastrophic event” for many developing and the poorest countries. Given the extent of the economic contraction, there was a rising risk of disruptive debt crises in countries. So that has got a lot of focus here at the meetings, he told the media at the start of the annual meetings of the IMF and the World Bank. “The recession has been one of the deepest since the Great Depression. And for many developing countries, and for the people in the poorest countries, it is truly a depression, a catastrophic event. It is continuing to add to the ranks of those in extreme poverty,” he said.