Stocks languish as macro risks pile up; banking, financials lead fall

Despite opening on a positive note, domestic stocks gave up all gains in a highly volatile session. Equity benchmarks reversed early gains to finish in the negative territory on Wednesday as risk-off mood prevailed amid grim prognoses of the economic fallout of the Covid-19 pandemic. Weak global markets and the rupee plunging to its all-time low against the dollar further weighed on sentiment, traders said. On the other hand, HUL, HCL Tech, ITC and Nestle India were among the gainers, rising up to 6.07 per cent. Despite opening on a positive note, domestic stocks gave up all gains in a highly volatile session following negative sentiment in global equities amid projections of major slump in economic growth, traders said. "There may be greater clarity for the market participants as the details of the limited relaxation of the lockdown rules are announced by the state governments. But the volatility in the markets may stay with us till the trajectory of growth and price level becomes less uncertain," said Joseph Thomas, Head of Research - Emkay Wealth Management. "Almost all sectors have been affected by the lockdown and the market will try to measure the future financial impact of this, rather than focusing on the previous quarter numbers. Brent crude futures, the global oil benchmark, slipped 4.43 per cent to USD 28.29 per barrel. The death toll due to Covid-19 rose to 377 while the number of cases in the country climbed to 11,439 on Wednesday, according to the Union Health Ministry.