Sensex plummeted 1,708 points or 3.44% on Monday to end the day at 47,883.38. Similarly, the broader NSE Nifty plunged 524.05 points or 3.53% to finish at 14,310.80. Rupee fell 26 paise or 0.36%  to trade at 74.98 against the US dollar. 

These crashes in the 30-share BSE index have become an often occurrence in the last few weeks, this time caused due to the surge of COVID-19 cases over the weekend. Last Monday had seen the Sensex fall about 1,450 points or 2.9%  in the early trading hours. 

“Domestic equities reminded the bloodbath of March 2020 as record rise in COVID-19 cases in the country and possibility of lockdowns in several states dented investors’ sentiments,” said Binod Modi, Head – Strategy at Reliance Securities, reports PTI. 

Similar is the case with Nikkei in Japan, Hang Seng in Hong Kong and Shanghai Composite in China. The three markets fell between 0.5% and 1% on Monday.

The fall in the indexes can be attributed to growing concerns over states considering a more stringent lockdown as COVID-19 cases rise sharply. Maharashtra saw a rise of 63,000 cases and 381 deaths on Monday. Reports of the possibility of a two-week lockdown  have hampered the economic activities in the state.

The industrial activities, manufacturing sector  and GDP for the current financial year are also falling victims to the pandemic. The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) slipped to a seven-month low of 55.4 in March from 57.5 in February.