Indian bourses nosedived in early trading on Monday. The Bombay Stock Exchange’s 30-share index, Sensex fell 1,032 points to trade at 28,784. The broader 50-share index Nifty of the National Stock Exchange also plummeted 285 points to 8,376.
Sell-offs in the automobile, metal, and financial sector stocks pulled down the Indian equity markets in early trading. Both Sensex and Nifty regained some momentum after a steep fall in the opening trade. Sensex recovered to trade at 29,266 level. Similarly, Nifty too recovered to trade at 8,480.
Market participants believe that the trading is likely to remain choppy in the coming days owing to uncertainties on account of COVID-19 as well as the impact of lockdown on the economy.
The Indian bourses witnessed the biggest daily fall on 23 March when the BSE Sensex fell by 4,000 points to come down to below 26,000 levels.
The Indian currency also fell on Monday in opening trading. The currency fell 32 paise to Rs 75.21 against the dollar in opening trading.
Last week, the Indian central bank, the Reserve Bank of India announced a 0.75 percent reduction in the benchmark rates to ensure that economic activity remains afloat. RBI also announced liquidity measures to maintain optimum liquidity with the banks as well as financial institutions. The Indian government has indicated, it is also working on an economic package for the industry, which is likely to be announced in this week.