Trading halted as Sensex hits 10% lower circuit; rupee crosses 76/$

Rs 10 lakh crore worth of investor wealth eroded in morning trade

sensex reuters Representational image | Reuters

Another day of market mayhem is on the cards as trading on the BSE and NSE have been halted for 45 minutes on Monday after Sensex hit 10 per cent lower circuit in morning trade. The rupee, too, has hit a fresh low of 76.15 against the dollar on Monday. 

This is the second time this month that trading has been halted due to stock market free fall. The trading is expected to resume at 10:45am. 

Rs 10 lakh crore worth of investor wealth was eroded in morning trade on Monday. While the BSE Sensex cracked 10 per cent or more than 2,900 points, the NSE Nifty was trading below 8,000, as coronavirus disease positive cases continue to rise in India. Investors have been pessimistic as the government-ordered lockdown in affected regions on Monday has brought most economic activities to a halt. 

All Sensex components were trading in the red, with Axis Bank being the worst performer plunging more than 20 per cent in the 30-pack Sensex. Bajaj Finance, UltraTech Cement, ICICI Bank, Maruti, IndusInd Bank and M&M were the other losers in the morning trade. 

In the previous session on Friday, equity markets witnessed a relief rally after four days of fall. The BSE benchmark ended 1,627.73 points or 5.75 per cent higher at 29,915.96. The Nifty zoomed 482 points, or 5.83 per cent, to close at 8,745.45.

During the last trading week till Friday, the Sensex plummeted 4,187.52 points or 12.27 per cent, while the Nifty sank 1,209.75 points or 12.15 per cent.

Meanwhile, the rupee, too, has continued to fall as coronavirus continues to send gloom across the forex markets, The Indian currency has hit a new low of 76.15 against the dollar on Monday. The domestic unit plunged nearly 84 paise to 76.15 per dollar in the early trade against the previous close of 75.19 against the greenback. 

Sustained selling by foreign portfolio investors (FPIs) and subdued equity markets further weighed market sentiment. 

The number of global Covid-19 infections has shot past 3,00,000. Worldwide fatalities topped 14,000.

Cases in India rose to 390 over the weekend, according to the Health Ministry.

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