Reasons why the Indian stock market opened with red today

Several states across India have imposed night curfews and weekend Lockdowns. Considering the rapid surge in COVID-19 cases it is said that the lockdown might be imposed for few days. Reportedly, Maharashtra is in talks to imposed a 15-day lockdown to break the COVID chain. On Monday stock market opened up with red lines due to a large number of sellouts. The share prices of the companies started hitting new lows due to uncertainty caused by pandemics. Experts believe that the market would remain volatile for a week. BSE Sensex fell with 438.51 points( 0.87 percent) to finish at 49,591.32,  while Nifty50 stood over 32.45 points (0.21 percent) to close at 14,834.9 levels.

It is suggested that daily traders should remain stock-picky amidst the volatile behavior. Factors that have contributed to a fall are the rising number of COVID cases and weak global cues. For the unversed, India recorded a massive surge of COVID-19 cases as a part of a new wave with the highest single-day rise. On Sunday, approx 1.7 lakh cases were recorded. The night curfews and new lockdowns are surely affecting the trade/business. Which ultimately contributes to a downtrend in the stock market. On the other side, Asia opened to a new low, with Nikkei 225 trading down 0.51%, Shanghai Composite down 0.72%, and the KOSPI 50 is trading flat. The fall is surely an indication of how the COVID-19 new wave has affected the market trend in Asian countries.

As of now, NIFTY50 fell by 500.80 points, SENSEX with 1680.88 points, NIFTYBank with 1710.25 points and NIFTY IT with 666.40 points.

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Snehal Jorigal:
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