Sensex drops by almost one per cent; Axis Bank dips by nearly 5 per cent

Amidst index-heavyweights such as RIL and Infosys plunging, equity benchmark Sensex dropped by 0.60 per cent or 209.75 points to settle at 34,961.52 while Nifty slid by 0.68 per cent or 70.60 points to close at 10,312.40.

The domestic markets were on edge owing to the current COVID-19 pandemic situation as well as concerns over the ongoing India-China border tensions and a fresh round trade war globally. An announcement was made by Reserve Bank of India (RBI) regarding special open market operations (OMOs) of simultaneous purchase & sale of government securities of Rs 10,000 crore each on July 02, 2020.

On Monday, Asian markets remained shaky throughout their respective trading sessions and witnessed sell-offs as the surging coronavirus cases spooked investors once again, further giving rise to concerns over global economic recovery. Shanghai index dipped by 0.61 per cent while Hang Seng, KOSPI and Nikkei decreased by 1.01 per cent, 1.93 per cent and 2.30 per cent respectively.

On the contrary, investors in European markets believe that the second wave of COVID-19 has been anticipated for a while and that the new COVID-19 outbreaks will be contained quickly. With such optimism and the lifting of travel restrictions, European markets such as FTSE 100, DAX and CAC 40 were seen trading in positive, up by 0.38 per cent, 0.76 per cent and 0.34 per cent respectively.

Rupee ended at 75.58 per US dollar as against a close of Rs 75.63 per US dollar on June 26. Crude oil prices fell for the second straight session as positive Coronavirus cases in US and other places were found, leading to partial lockdowns being imposed again in some countries. This can negatively impact the demand for fuel in the future.

Nine stocks in the Sensex basket advanced while 21 stocks declined. Index gainers consist of HDFC Bank increasing by 1.97 per cent, HUL rising by 1.30 per cent, Kotak Mahindra Bank gaining by 1.27 per cent, Bharti Airtel up by 1.24 per cent, ITC gaining by 1.08 per cent, etc.

Sensex losers comprised Axis Bank dropping by 4.78 per cent, Tech Mahindra declining by 3.47 per cent, SBI decreasing by 2.87 per cent, L&T down by 2.65 per cent, IndusInd Bank falling by 2.50 per cent, Infosys decreasing by 2.23 per cent, NTPC down by 2.11 per cent, ONGC dipping by 2.08 per cent, etc.

Amongst BSE sectoral indices, the biggest loser was Realty index, down by 2.94 per cent. BSE FMGC index and BSE Telecom Index were the only two sectoral gainers on BSE, up by 0.84 per cent and 1.88 per cent respectively. At a broader level, BSE small-cap index fell by 1.23 per cent and BSE mid-cap index declined by 1.39 per cent.