Coronavirus: Markets open in negative territory as rising Covid-19 cases spook investors

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HIGHLIGHTS

Domestic markets open weaker on Thuesday citing fresh spike in Covid-19 cases
Delay in relief package also weiged down market sentiments
At around 9:35 am, BSE Sensex was trading lower by 179.29 points

Domestic markets on Thursday opened on Thursday in negative territory due to a sharp spike in Covid-19 cases in India, sparking fresh fear among investors on Dalal Street.

Another reason behind the weak start is the delay in the release of a relief package, which seems to have dented investor sentiments.

At around 9:35 am, BSE Sensex was trading lower by 179.29 points or 0.57 per cent at 31,506.46 while NSE Nifty fell 0.36 per cent at 9,237.90 points.

Yes Bank was the top gainer in early trade after reporting a net profit of over Rs 2,600 crore in March quarter. Yes Bank shares surged nearly 20 per cent in morning trade. HCL Tech also gained nearly 3 per cent after positive Q4 numbers.

However, bank, oil and FMCG stocks pulled the stock market during the morning trade session. Some of the top losers during the session are Hindustan Unilever, ONGC, Kotak Mahindra Bank, BPCL, ONGC.

While the India VIX volatility Index fell by 2 per cent, the fear gauge continues to paint a grim picture. Meanwhile, all Nifty Sectoral indexes are trading in green except Nifty Bank, Nifty FMCG and Nifty Financial Services.

The primary reason behind weak market sentiments today is the fresh jump in cases in India. The country now has nearly 53,000 positive cases with over 1,700 deaths, trigger another wave of uncertainty in the markets.

Globally, Asian shares pared early losses after a surprise jump in Chinese exports. Beijing reported a 3.5 percent rise in exports in April against all odds.