Banking allegations from across the world and rising Covid-19 infections in Europe, pulled the Sensex and the Nifty lower. Today's drop had largely to do with a meltdown from around the world and had little to do with India. Two of the leading global banks saw their share price tumble following reports that they allegedly moved large sums of suspicious funds.
The Sensex ended the day lower by a whopping 810 points, while the Nifty dropped nearly 254 points in trade on weak global cues.
European stocks saw selling pressure largely on account of allegations surrounding bank dealings and rising coronavirus infections in some countries.
Banking stocks were the hardest hit, with IndusInd Bank falling as much as 8 per cent, while ICICI Bank dropped as much as 5 per cent. Metal stocks too came in for some severe selling pressure with Hindalco, JSW Steel and Tata Steel among the big losers in trade.
Reliance Industries, which has been supporting the market for the last few months, did not do so today and the stock lost 2.2 per cent. A lesser than expected fall in the HDFC twins managed to prevent a sharper fall in the indices.
Meanwhile, in Europe the German DAX saw cuts of more than 3 per cent, while the French CAC was down 2.87 per cent.