The recent spike in coronavirus infections in the second wave is setting off tremors that may derail the nascent economic recovery. Globally, the rising US bond yields, are a concern as they make equity valuations appear stretched.
After logging gains of more than a percent in the previous session, the market benchmarks of the Sensex and the Nifty slid downward on March 22 as the investors took money off the table amid concerns over rising bond yields and a surge in coronavirus cases.
The Sensex fell 577 points, while the Nifty slipped to 14,597.85 in intraday trade. However, the market recovered in the final hour of trade and ended with minor losses.
At close, the Sensex was 87 points, or 0.17 percent, down at 49,771.29, while the Nifty settled 8 points, or 0.05 percent, lower at 14,736.40.
Midcaps and small caps outperformed their large peers as the BSE midcap and smallcap indices closed 0.99 percent and 0.73 percent up.