Indian shares dropped the most in over six months to finish lower Thursday with investors rushing to book profits amid a rise in Covid-19 cases.
The National Stock Exchange’s Nifty50 Index ended 1.94% lower at 17,857.25. The S&P BSE Sensex closed 1.89% at 59,984.70.
The day saw all 15 Nifty sectoral indices end in the red, with the Public Sector Undertakings (PSU) Bank Index, comprised of 13 state-run lenders, shedding the most with 5.22%.
The Nifty Realty Index, comprised of 10 stocks including the nation’s top homebuilder DLF, fell 3.77%, while the Nifty Metal Index, comprised of 15 stocks including commodities major Adani Enterprises, dropped 3.44%.
Winners and losers
The Indian rupee was trading 0.21% higher to the US dollar, at INR74.89 as of 18:00 hours Indian time (UTC+5:30).
On the Nifty, shares of IndusInd Bank, engineering-to-software conglomerate Larsen and Toubro (L&T) and Aditya Birla Group firm UltraTech Cement were the top gainers, adding 2.58%, 1.82% and 1.19%, respectively.
Adani Ports and Special Economic Zone, cigarette-maker ITC and state-owned Oil and Natural Gas were the top losers, shedding 7.35%, 5.58% and 4.43%, respectively.
Meanwhile, on the Sensex, shares in IndusInd Bank, L&T and UltraTech Cement were the biggest gainers, adding 2.94%, 1.66% and 1.07%, respectively.
ITC, the nation’s second-largest private lender ICICI Bank and smaller rival Kotak Mahindra Bank were the biggest losers, shedding 5.54%, 4.39% and 4.05%, respectively.
Earlier today, the administration said India’s pandemic restrictions will stay in force through November to prevent any further spread of coronavirus infections, particularly during the ongoing festive season.
The home ministry's order came as the country reported 16,156 new infections, the highest single-day rise in cases since 23 October.
The difference between stocks and CFDs
The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.
With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.
CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.