A day after India recorded the biggest single-day spike of more than one lakh COVID-19 cases, stock market index Sensex convulsed violently shedding more than 1,000 points on Monday. Experts have linked the crash to spiralling COVID-19 cases saying that the equities ‘do not look to be inspiring’ in the current scenario.

“Domestic equities do not look to be inspiring at the moment. A sharp spike in coronavirus cases in the country and resultant restrictions are likely to dent investors’ sentiments in the near term,” said Binod Modi, the Head of strategy at Reliance Securities, reports PTI.

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Equity benchmark Sensex fell over 1,100 points in early trade on Monday, pulled down by losses to HDFC twins, ICICI Bank and Reliance Industries despite a positive trend in global markets. Except IT, most other sectors were trading in red. The 30-share BSE index was trading 1,100 points or 2.41% lower at 49,594.93, and the broader NSE Nifty dropped 336 points to 14,531.

Referring to the COVID restrictions in Maharashtra, Modi added, “Imposition of weekend lockdown in Maharashtra, which contributes over 13% of the country’s GDP and nearly 20 per cent of India’s industrial output, does not augur well.”

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India on Sunday recorded 103, 844 COVID-19 cases pushed by 57,074 in Maharashtra, highest since the pandemic began in March, last year.