The benchmark index on Wednesday tanked 627 points on the last day of the financial year as investors remained cautious amid rising Covid-19 cases. The rupee, however, witnessed some volatility but closed nearly 26 paise higher at 73.12 against the dollar.

Analysts are of the view that stocks are likely to consolidate over the immediate term and the focus of attention will be Covid cases in the country, the vaccination drive, the upcoming results season and the monetary policy that will be announced on April 7.

While Maharashtra, which is one of the worst affected by the Covid-19 pandemic, has indicated that it will not go for a complete lockdown, it is felt that the rising number of cases could limit gains and lead to intermittent corrections.

Rupee gain

In the forex markets, the rupee closed higher by 26 paise at 73.12 against the dollar. Tracking stock gains during the year, it ended 2020-21 on a strong note with a gain of over 3 per cent though the domestic economy felt the pinch of the pandemic.

In Wednesday’s trade, the domestic currency saw some volatility as it opened at 73.56 against the greenback and hit an intra-day high of 73.05 and a low of 73.58. It finally ended at 73.12 against the greenback, registering a rise of 26 paise over its previous closing.

On Tuesday, the rupee had settled at 73.38 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10 per cent to 93.20.

The domestic currency markets will remain shut for the next two sessions for annual bank closing and Good Friday holidays.

The Sensex opened lower at 50049.12 and hit a day’s low of 49442.50. It closed below 50000 at 49509.15 — a drop of 627.43 points or 1.25 per cent.