Sensex Falls As Coronavirus Infections In India Rise

Hopes of a sustained rally after sharp gains on Tuesday were shortlived, as mounting coronavirus infections in India saw the Sensex losing 214 points to end the day lower.

The number of coronavirus cases rose to 28 in India as six people from Agra - who were relatives of Delhi-based man tested positive for infection, the government said on Wednesday.

Trading in Wednesday was characterized by volatility, as the Sensex started the day with decent gains and ended with losses.

Surprisingly, HDFC Bank, which is generally resilient in a falling market shed 3 per cent in trade. Among the losers were Yes Bank, Tata Motors, Eicher Motors, IndusInd Bank and Tata Steel.

Pharma stocks ended the day with solid gains led by Cipla, Dr Reddy's and Sun Pharma. Several stocks fell to their 52-week lows. Among these included SpiceJet, Karur Vysya Bank and EIH. There are worries that travel and tourism is likely to be impacted, which hit these stocks.

Meanwhile, Asian markets ended the day almost little changed, while most of Europe was trading with gains. Global markets have barely reacted to the US decision to cut interest rates, as mounting worries over the spread of the caronavirus weighed on sentiments.

Investors are advised caution as volatility may continue well into next week.