Domestic stock markets reversed direction to give up early gains on Monday following a positive opening amid gains across Asian equities on optimism around a fast recovery from the coronavirus pandemic-induced slowdown. The S&P BSE Sensex index dropped 206.91 points to 39,407.16 at the weakest level recorded in early deals, and the broader NSE Nifty 50 benchmark slid to as low as 11,580.80, down 61.6 points from its previous close. Losses in energy, IT and metal shares pulled the markets lower, however gains in banking and financial services stocks provided some support.
At 9:23 am, the Sensex traded 41.00 points – or 0.10 per cent – higher at 39,655.07, while the Nifty was up 11.60 points at 11,654.00.
Share markets in other Asian markets bounced off one-month lows on Monday on solid data from China showing factory activity expanded at its fastest pace in a decade while oil prices skidded as many Western countries slid back into coronavirus-driven lockdowns.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose as much as 0.50 per cent, as China’s Caixin/Markit Manufacturing Purchasing Managers’ Index offered hope the region’s success in containing the coronavirus could spare it the economic pain being inflicted on Europe and the US.