Sensex Sinks Over 1,700 Points As Coronavirus Fears Hurt Global Markets: 10 Points

A selloff across sectors – led by financial, metal, energy and IT stocks – weighed on the markets

Domestic stock markets suffered sharp losses on Monday with benchmark indices slumping more than 4 per cent tracking a selloff in global markets, as investors panicked about the severity of coronavirus pandemic amid fears of recession. The S&P BSE Sensex index plummeted as much as 1,718.81 points to hit 35,857.81 on the downside in mid-morning deals, and the broader NSE Nifty benchmark slumped to as low as 10,525.45, down 464 points from the previous close. A selloff across sectors – led by financial, metal, energy and IT stocks – weighed on the markets.

Here are 10 things to know about the selloff across global markets:

  1. At 10:36 am, the Sensex traded 1,504.58 points – or 4.00 per cent – lower at 36,072.04 while the Nifty was down 417.35 points – or 3.80 per cent – at 10,572.10. All the 11 sectoral indices traded sharply lower, with the Nifty Bank – comprising stocks of 12 major lenders in the country – down 4.11 at the time.

  2. Forty six stocks in the Nifty basket of 50 shares struggled against losses at the time. Worst hit in percentage terms were ONGC, Vedanta, Reliance Industries, Zee Entertainment, IndusInd Bank and Tata Steel, down between 5.96 per cent and 10.62 per cent each. On the other hand, Yes Bank and Bharat Petroleum managed gains, up 18.27 per cent and 10.79 per cent respectively.

  3. Reliance Industries, ICICI Bank, HDFC Bank and Infosys were the top drags on Sensex, together accounting for a loss of more than 700 points in the index.

  4. Analysts who have been tracking coronavirus news over past few weeks say the pandemic is a huge negative in the near term, and further market correction cannot be ruled out for the time being.

  5. Equity markets across Asia sank in a sea of red with MSCI’s broadest index of Asia-Pacific shares outside Japan plummeting 3.0 per cent to a five-month low, Japan’s Nikkei falling 4.7 per cent and Australia’s commodity-heavy market down 5 per cent.

  6. US and European market futures pointed to sharp losses. Wall Street E-Mini futures were down 4.6 per cent, while Europe’s EUROSTOXXX 50 and FTSE futures tumbled 4.4 per cent and 4.8 per cent respectively. Crude oil prices nosedived 31.5 per cent to $31.02 a barrel in their biggest percentage slump since the start of the first Gulf War.

  7. Risk sentiment around the globe soured due to the unabated spread of the coronavirus outbreak and a plunge in oil prices. The number of people infected with the coronavirus has topped 107,000 across the world as the outbreak reaches more countries and causes more economic pain. In India, the number rose to 39, a day after five of a family in Kerala tested positive.

  8. Crude oil fell by the most since 1991 after Saudi Arabia started a price war with Russia by slashing its selling prices and pledging to unleash its pent-up supply onto a market reeling from falling demand because of the coronavirus outbreak.

  9. Investors around the globe are looking at more central banks and authorities to announce measures to shield world economy from the virus. The European Central Bank meets on Thursday and will be under intense pressure to act, but rates there are already deeply negative.

  10. Domestic stock markets had declined in 13 out of past 16 sessions, and as of Friday’s close, benchmark indices S&P BSE Sensex and NSE Nifty were down 8.91 per cent and 9.69 per cent respectively so far this year. On Friday alone, the Sensex shed 893.99 points (2.32 per cent) to end at 37,576.62 and the Nifty finished at 10,989.45, down 279.55 points (2.48 per cent) from the previous close. 

Leave a Reply

Your email address will not be published. Required fields are marked *