BENCHMARK Sensex crashed 1,069 points on Monday tracking massive selloffs in banking and auto stocks as Government’s fiscal stimulus package failed to revive confidence in domestic investors. The 30-share BSE index ended 1,068.75 points or 3.44 per cent lower at 30,028.98, while the broader NSE Nifty plunged 313.60 points or 3.43 per cent to 8,823.25.
IndusInd Bank was the top laggard in the Sensex pack, cracking around 10 per cent, followed by HDFC, Maruti Suzuki, Axis Bank and UltraTech Cement. On the other hand, TCS, Infosys, ITC and HCL Tech closed with gains. Traders and investors remained on edge as the Home Ministry extended the lockdown for another two weeks till May 31 to contain the spread of coronavirus, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.
There lief package announcements appearedfalling short of meeting market expectations on any demand side reforms, triggering an intense selloff in the domesticmarket, henoted. The Government, in its first four tranches of the stimulus package, focused on credit line to small businesses and new fundcreations to be shouldered by banks and financial institutions with very little extra budget spending.
In the last set of measures,thecentreonSunday announced plans to privatise PSUs in non-strategic sectors and suspend loan default-triggered bankruptcy filings for one year, and also gavea Rs 40,000- crore hike in allocation for the rural employment guarantee scheme to provide jobs to migrant workers.