New Covid strain scare: Sensex dips over 1,400 pts

A mutant strain of Covid-19 not only strained the transport links to the UK but also spooked global investors, plunging India's stock markets deep into the red on Monday.

Resultantly, India's equity benchmark indices fell the hardest in seven months.

It is speculated that 'Basket' selling by FPIs likely triggered the sharp fall in Indian markets.

Accordingly, both the key indices S&P BSE Sensex and NSE Nifty50 - fell by over 3 per cent on Monday.

In terms of intra-day, the Nifty50 touched a low of 13,131.45 points while Sensex plunged to 44,923.08 points.

Globally, investors were spooked at the prospects of economic damage unleashed by a new and more contagious Covid-19 strain discovered in the UK.

Consequently, air travel linkages to and from many regions of the world including India to the UK has been suspended.

The Indian markets had a 'gap down' opening soon started to recede at an alarming pace.

Besides, high valuation and absence of any positive trigger added weight to the slide.

All sectoral indices ended in the negative with PSU Bank, Media, Metals realty, Auto, Banks and Pharma indices being loss leaders.

Broader market indices line Midcap and Smallcap fell more than the Nifty.

At the end of the day's trade, the Sensex plunged to 45,553.96 points, down 1,406.73 points or 3 per cent from its previous close.

Similarly, Nifty50 fell to 13,328.40 points, down 432.15 or 3.14 per cent from its previous close.