Market

Closing Bell: Sensex, Nifty end 1% lower on Coronavirus fears; metal, bank stocks drag

Updated : January 27, 2020 03:43 PM IST

Indian shares ended lower on Monday, followed Asian peers, mainly dragged down by metals stocks, as fears about the economic impact of Coroonavirus outbreak curbed risk appetite.

The Sensex settled 458 points lower at 41,155, while Nifty ended 129 points lower at 12,119.

Among stocks, Dr Reddy's M&M, Cipla, UltraTech Cement and Eicher Motors were the top gainers on Nifty.

Indian shares ended over 1 percent lower on Monday, following Asian peers, mainly dragged down by metals stocks, as fears about the economic impact of Coroonavirus outbreak curbed risk appetite. The Sensex settled 458 points lower at 41,155, while Nifty ended 129 points lower at 12,119.

Globally, Japan's Nikkei average and US S&P 500 mini futures fell sharply, and oil prices slumped 2 percent to multi-month lows, amid news that the ability of the coronavirus to spread is getting stronger, with the death toll from the virus rising to 80.

Analysts also expect Indian markets to remain volatile until the announcement of the Union Budget on February 1, which may include government measures to revive economic growth that has slipped to a more than six-year low.

Meanwhile, broader markets outperformed with Nifty Midcap down only 0.4 percent and Nifty Smallcap indices up 0.03 percent.

Among stocks, Dr Reddy's M&M, Cipla, UltraTech Cement and Eicher Motors were the top gainers on Nifty, while metal stocks like Vedanta, Tata Steel, JSW Steel led the losses.

All sectoral indices, except Nifty Pharma, ended the day in the red. Nifty Metal fell the most, down 3 percent, while Nifty PSU Bank and Nifty Bank lost 2.2 percent and 1.3 percent, respectively. Nifty FMCG was also down 1 percent, and Nifty IT shed 0.5 percent.

However, Nifty Pharma advanced 1.5 percent during the day. The rally was led by Dr Reddy's which rose over 5 percent post its Q3 earnings.

Metal stocks were under pressure as metal prices declined on demand concerns after CoronaVirus cases in China surge. Vedanta, Tata Steel, JSW Steel and Hindalco fell 2.5-5 percent.

Post reporting weak earnings, Bank of Baroda lost 3 percent after muted business growth and one-offs in opex further drove its loss to Rs 1,410 crore in the third quarter.

Siemens shares fell 4 percent as brokerages gives a thumbs down to its acquisition of C&S Electric.

Closing Bell: Sensex, Nifty end 1% lower on Coronavirus fears; metal, bank stocks drag

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