Sensex sheds 1,069 points as financial stocks take a hit

Share markets lost over three per cent of their values on Monday as traders showed their disappointment on the government’s stimulus package to fight the Covid-19 pandemic.

Sensex closed 1,069 points or 3.44 per cent lower at 30,029 while the Nifty 50 edged lower by 314 points or 3.43 per cent at 8,823.

All sectoral indices, except for information technology, at the National Stock Exchange were in the red. The banking sector closed 6.9 per cent below the previous day’s end. PSU banks were down by 5.9 per cent, financial service by 6.6 per cent and auto sector was down by 5.5 per cent.

Bank stocks tumbled after the government said it will halt fresh insolvency cases for a year to avoid bankruptcies from firms hit by the Covid-19 pandemic.

IndusInd Bank was down by 9.6 per cent to close the day at Rs 378.35 per share while Axis Bank slipped by 7 per cent and ICICI Bank by 6.8 per cent.

Auto majors Maruti Suzuki and Bajaj Auto skidded by 7.1 per cent and 6.9 per cent. The other prominent losers were Eicher Motors, Bharat Petroleum Corporation, UltraTech Cements and HDFC.

However, Cipla, Tata Consultancy Services, Bharti Infratel, Infosys and HCL Technologies gained at the stock market.