Sensex drops 871 points, banking stocks slump (2nd Ld)

The Indian stock market witnessed a freefall on Wednesday with the BSE Sensex losing over 800 points.

The decline in the domestic market took place in line with the global selloff. Heavy selling pressure was witnessed in banking, finance, metal and auto stocks.

Globally, stock markets were weignhed on by the concerns of rising coronavirus cases and prospects of restrictions in Europe.

Further, the Union Health Ministry’s statement on Wednesday that a total of 771 variants of concerns (VOCs) have been detected in a total of 10,787 positive samples shared by the states and Union Territories also weighed on the market sentiments during the later part of the trade, analysts said.

The Sensex closed at 49,180.31, lower by 871.13 points, or 1.74 per cent, from its previous close of 50,051.44.

It had opened at 49,786.47 and touched an intra-day high of 49,854.58 and a low of 49,120.34 points.

The Nifty50 on the National Stock Exchange was trading at 14,549.40, lower by 265.35 points, or 1.79 per cent, from its previous close.

Mahindra & Mahindra, State Bank of India, and Axis Bank were the major losers on the Sensex, while Asian Paints, and Power Grid were the only gainers during the day.