Mumbai: Indian stock markets fell on Tuesday, following global stocks that fell on renewed concerns about the rapid spread of the delta variant. The twins HDFC and ICICI Bank were the main contributors to Sensex’s decline.
The benchmark Sensex was currently at 52,210.53, down 0.7%, while Nifty was down 0.7% to 15,643 points.
Asian stocks were down on Tuesday as growing fears that the spread of the delta variant of the coronavirus would hurt the global economic recovery sharply slipped riskier assets, including oil. Shares on Wall Street fell as much as 2% on Monday, with the Dow Jones recording its worst day in nine months as covid-19 deaths increased in the United States.
Back home, investors were also worried about the impact of rising inflation. Bank stocks came under pressure for the second session due to renewed asset quality fears / upward slippage following first quarter results from lenders. Metals and autos stocks also fell amid fears of the virus and inflationary concerns globally.
“The first quarter earnings season has been mixed so far and has led to some industry / equity specific actions that are expected to continue. Additionally, it may provide investors with a glimpse of the extent of the economic recovery. through management commentary. The market has consolidated near its highest levels of living over the past two weeks. While declines are factored in, tracking is missing at higher levels, suggesting a some fatigue, ”said Siddhartha Khemka, head of retail research, Motilal Oswal Financial.
“Overall, the stock markets have shown strong resilience even as they face headwinds related to the advent of a possible third wave of COVID and persistent inflation readings causing a potential rate hike, ”Khemka added.
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