Red flags on D-Street: Sensex tanks 1,700 points; Nifty sheds 500 points

Benchmark indices declined sharply on Monday with Sensex tanking nearly 1,700 points and Nifty shedding 500 points midday as Covid cases continued to surge in India

At the time of filing this copy, Sensex was at 47,909, down 1,682 points while Nifty was at 14,329, down 505 points.

On the BSE, all stocks except pharma stocks Cipla and Dr Reddy's were in the red. Financial stocks and power companies dragged the Sensex..

Likewise, all NSE Nifty indices were in the red.

The rupee weakened to a more than eight-month low of 75.1375 against the dollar.

Cipla and Dr Reddy's both sell Covid-19 related drugs and Dr Reddy's was reportedly in talks with RDIF for the manufacture of Sputnik V, which will be reviewed by a Subject Expert Committe for Emergency Use Authorisation today.

India on Monday reported another record daily surge in coronavirus cases, with the total now eclipsing Brazil's tally. The state of Maharashtra is considering a lockdown and could take a final decision this week, a senior government official said.

"Since the second wave of the pandemic is turning out worse than expected, there is profound uncertainty about its impact on the economy and markets," said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services.

Given the worsening situation in economically significant Maharashtra, Vijayakumar said the market's assumption of 11% economic growth and above-30% earnings growth could take a hit.

(With agency inputs)