Domestic stocks dropped on Monday following the imposition of strict restrictions in Maharashtra to contain the spread of Covid-19 infections, with investors fearing that the resurgence in virus cases could dent the economy recovery and hurt corporate earnings.
The benchmark Sensex fell as much as 1,449 points, or 2.9 per cent, in intra-day trade. The index settled at 49,159, logging a loss of 870 points, or 1.7 per cent. The Nifty 50 index closed at 14,638, down 229 points, or 1.5 per cent. Both the indices fell the most since March 24. The rupee weakened 18 paise against the dollar to end at 73.29.
“The semi-lockdown by the Maharashtra government has made investors nervous,” said Jyoti Jaipuria, founder, Valentis Advisors.