Read more about Indian indices lag most global peers: Sensex has declined 5.8% in April on Business Standard. This is a sharp reversal in fortunes as till mid-February India was among the best-performing markets, with returns in excess of 10 per cent
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.
Domestic markets surged in the final hour of trade on Tuesday as the Nasdaq futures jumped over 2 per cent amid a softening in the US bond yields. After briefly slipping into negative territory, the Sensex managed to end with a gain of 584 points, or 1.2 per cent. The index touched an intra-day low of 50,396, but finished at 51,025. The Nifty50 index rose 142 points, or 0.95 per cent, to close at 15,098. Investor sentiment was boosted after the futures markets indicated a strong opening on Wall Street. Furthermore, the mood was lifted by the fall in bond yields and the weakening of the US dollar. The 10-year US bond yield fell about six basis points to 1.52 per cent. The rupee ended at 72.92 compared with 73.25 in the previous session.