September 21, 2023

Maharashtra Covid-19 curbs sink markets; Sensex falls over 1,400 points

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By Administrator_ India

Capital Sands

Domestic stocks dropped on Monday following the imposition of strict restrictions in Maharashtra to contain the spread of Covid-19 infections, with investors fearing that the resurgence in virus cases could dent the economic recovery and hurt corporate earnings.

The benchmark Sensex fell as much as 1,449 points, or 2.9 percent, in intra-day trade. The index settled at 49,159, logging a loss of 870 points, or 1.7 percent. The Nifty 50 index closed at 14,638, down 229 points, or 1.5 percent. Both the indices fell the most since March 24. The rupee weakened 18 paise against the dollar to end at 73.29.

“The semi-lockdown by the Maharashtra government has made investors nervous,” said Jyoti Jaipuria, founder, Valentis Advisors.

India on Monday recorded the biggest single-day rise in Covid-19 cases with a daily count crossing 100,000, surpassing the previous record made in September 2020. Rising Covid cases have led to weekend lockdowns in Maharashtra, home to financial capital Mumbai. The new restrictions will be in place till the end of this month.

Rating agency CARE said the new curbs could impact gross value added (GVA) of around Rs 40,000 crore. Trade, hotels, transport, financial services, and real estate could be impacted the most, it said.

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