Sensex falls 2,919 points and Nifty below 9,600
The BSE Sensex fall to 2,919 points on Thursday in its biggest one-day fall in absolute terms as the coronavirus pandemic wreaked havoc on global markets.
The Sensex was 3,204.30 points during the day, the 30-share index settled 2,919.26 points or 8.18 percent lower at 32,778.14.
Likewise, the broader NSE Nifty gave up the 9,600 level, slumping 868.25 points or 8.30 percent to close at 9,590.15.
All Sensex components ended in the red. Whereas SBI was the top loser, along with ONGC, Axis Bank, ITC, Titan, Bajaj Auto, TCS, and IndusInd Bank.
Global markets reeled after the World Health Organization (WHO) termed the coronavirus outbreak as a pandemic, and expressed deep concern over the “alarming levels of inaction”.
US President Donald Trump suspended all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus.
Countries across the world are imposing travel restrictions, fuelling fears of a global economic recession, analysts said.
Narendra Solanki, Head Fundamental Research said “In line with the bearish trend in global markets, Indian stocks opened at significant lower levels as investors remained anxious about the economic impact of the coronavirus outbreak.
He further said “A selloff across sectors along with panic selling in the broader markets hurt investor sentiment”.
“Besides a selloff in global equities, massive plunge in international oil prices and depreciating rupee added to the volatility”.
The rupee depreciated 49 paise to 74.17 per US dollar (intra-day).Brent crude oil futures dropped 5.50 per cent to USD 33.82 per barrel.Elsewhere in Asia, bourses in Shanghai dropped 1.52 per cent, Hong Kong 3.66 per cent, Seoul 3.87 per cent and Tokyo cracked 4.41 per cent.Markets in Europe crashed up to 6 per cent in early trade.In overnight trade, the Dow fell into a bear market and futures pointed Thursday to another rout in New York and Europe.
Gaurav Dua, Senior Vp, Head – Capital Market Strategy & Investments, Sharekhan by BNP Paribas said “Globally, a fall of 20 per cent from the recent peak is normally considered as a bear market. However, the definition does not hold good in India. Given its high beta, Indian markets have corrected by 25-30 per cent number of times and recovered quite quickly to resume the uptrend”.
The union Health Ministry has said “The number of coronavirus patients in India has risen to 73 with 13 fresh cases, including nine from Maharashtra and one each from Delhi, Ladakh, and Uttar Pradesh as well as one foreign national”.
Covid-19 has claimed over 4,200 lives and infected more than 117,330 people across 107 countries and territories.