Sensex drops 2,000 points on US-China tensions, extension of countrywide lockdown

Equity benchmark indices plunged nearly 6 per cent on Monday tracking weak global cues after the latest flare-up in US-China tensions.Among stocks, Hindalco was the top loser after dropping by 10.68 per cent to Rs 116.30 per share.Meanwhile, Asian stock markets struggled for traction and oil prices fell after a US-China spat over the origin of coronavirus.

Equity benchmark indices plunged nearly 6 per cent on Monday tracking weak global cues after the latest flare-up in US-China tensions.

Besides, rising coronavirus cases in the country and the extension of nationwide lockdown for two more weeks also weighed on investor sentiment.

At the closing bell, the BSE S&P Sensex was down by 2,002 points or 5.94 per cent at 31,715 while the Nifty 50 edged lower by 566 points or 5.74 per cent at 9,294.

Except for Nifty pharma, all sectoral indices at the National Stock Exchange were in the red with Nifty private bank down by 8.6 per cent, financial service by 8.4 per cent, metal by 7.8 per cent and auto by 7.2 per cent.

Among stocks, Hindalco was the top loser after dropping by 10.68 per cent to Rs 116.30 per share. Vedanta lost by 10.4 per cent, JSW Steel by 9.7 per cent and Tata Steel by 8.5 per cent.

Private lenders ICICI Bank, IndusInd Bank and Axis Bank lost by 10.5 per cent, 9.2 per cent and 8.5 per cent respectively. The other prominent losers were Bajaj Finance and HDFC.

However, shares of liquor manufacturers jumped after the Centre's lockdown 3.0 that came into effect allowed opening of liquor shops with strict social distancing norms.

Associated Alcohols and Breweries, GM Breweries, Radico Khaitan, United Breweries, Globus Spirits and United Spirits spurted over 5 to 17 per cent.

Pharma majors Cipla and Sun Pharma along with Bharti Airtel too traded with a positive bias.

Meanwhile, Asian stock markets struggled for traction and oil prices fell after a US-China spat over the origin of coronavirus.

South Korea's Kospi fell by 2.68 per cent and Hong Kong's Hang Seng returned from a two-session holiday with a 4.18 per cent drop.

US Secretary of State Mike Pompeo said on Sunday there was a significant amount of evidence that the virus emerged from a Chinese laboratory.

His comments came after President Donald Trump's threatened to slap new tariffs on China over the COVID-19 pandemic.

( With inputs from ANI )