Sensex tumbles 300 points as Covid cases rise, auto and banking stocks crack

Equity benchmark indices traded lower on Tuesday with auto and banking stocks as top drags while investor appetite globally was hit by concerns over rising Covid-19 infections and consequent delay in economic recovery.

The BSE S&P Sensex closed 300 points or 0.79 per cent lower at 37,734 while the Nifty 50 moved lower by 76 points or 0.68 per cent at 11,174.

Except for Nifty pharma and IT, all sectoral indices at the National Stock Exchange were in the negative terrain with Nifty auto dipping by 1.7 per cent, realty by 1.6 per cent and private bank by 1.1 per cent.

Among stocks, Bharti Infratel fell by 4.7 per cent, Ad Ports by 4.6 per cent and GAIL by 4.5 per cent. Auto majors Maruti Suzuki and Tata Motors skidded by 3 per cent and 2.6 per cent respectively.

IndusInd Bank, Axis Bank, Larsen & Toubro and ONGC too traded with a negative bias.

However, IT majors witnessed some gains with HCL Technologies moving up by 2.9 per cent, Tata Consultancy Services by 2.4 per cent and Tech Mahindra by 2.2 per cent.

Meanwhile, Asian markets were weak after the sharp pullback overnight in US stocks. Investor sentiment took a hit with possible delays in expanded US stimulus.

The undertone remained cautious as Europe sees some countries lockdown for the second time as Covid-19 cases jump which could hurt economic activity.

Global banking stocks remained under intense pressure on reports about financial institutions allegedly moving illicit funds.

Hong Kong's Hang Seng index was down by 0.84 per cent, South Korea's Kospi by 2.38 per cent and Shanghai composite by 1.29 per cent. Japanese markets were closed for a public holiday.

( With inputs from ANI )