The Indian stock market continues trading deep in the red with Sensex down 1,305.80 points or 4.43 percent at 28162.69, and the Nifty plunged 371.75 points or 4.32 percent at 8226.
The sectors which fell the most included banks and IT which were down over 5 percent each.
Bank stocks tumbled as investors fear that the lockdown triggered by COVID-19 will have a serious impact on businesses across the sectors and they may see a rise in their bad loans due to this. “We have factored a lockdown of 30-45 days in our revised estimates and cut individual banks’ loan growth in FY21 by 3-5 percent and taken deterioration in asset quality. Our earnings revisions are down between 10 percent and 35 percent,” said brokerage firm Phillip Capital.
The uncertain outlook and the country-wide lockdown has made banks vulnerable to a new leg of asset-quality crisis, with the most uncertain part being the lockdown period and the time that the economy would take to return to normalcy. “We believe the impact on asset quality would be the least for HDFC Bank, Kotak Mahindra Bank, and DCB Bank, but it would be relatively high for IndusInd Bank,” Phillip Capital said.
Among the banking names, the top losers included Kotak Mahindra Bank which plunged over 9 percent followed by State Bank of India, HDFC bank, ICICI Bank and Axis Bank which fell 4-5 percent each.
IT stocks are also under pressure with the currency market closed on April 1 and April 2. Share price of Mindtree tumbled over 10 percent while that of Tech Mahindra fell over 9 percent. The other losers included TCS, Wipro, HCL Tech, Infosys and NIIT Tech.
India VIX fell 5.56 percent and was trading at 60.83 level.
239 stocks hit 52-week low on BSE including Jindal Steel & Power, PVR, TVS Motor Company, Cummins India, Future Retail, RBL Bank, Bharat Forge and Eicher Motors.
On the other hand, 277 stocks hit lower circuit on BSE including Future Retail, Future Consumer, Future Lifestyle, Suven Life Sciences and AU Small Finance Bank.
The most active stocks in NSE in terms of volumes included YES Bank which fell 6 percent. It was trading with volumes of 6,518,569 shares, compared to its five day average of 5,859,144 shares, an increase of 11.25 percent. Share price of State Bank of India was down 5 percent. It was trading with volumes of 2,132,550 shares, compared to its five day average of 4,301,738 shares, a decrease of -50.43 percent.
Jindal Steel & Power Share price shed 16 percent and was one of the top metal losers. It was trading with volumes of 1,762,797 shares, compared to its five day average of 562,473 shares, an increase of 213.40 percent. On the other hand, Ashok Leyland share price fell 3 percent and It was trading with volumes of 1,166,192 shares, compared to its five day average of 2,346,047 shares, a decrease of -50.29 percent.