Sensex Falls Over 1,950 Points, Nifty Below 9,400 Amid Coronavirus Fears

Sensex Falls Over 1,950 Points, Nifty Below 9,400 Amid Coronavirus Fears thumbnail
Domestic stock markets suffered sharp losses, tracking global peers which fell even after the US central bank delivered another unscheduled rate cut. The S&P BSE Sensex index plunged as much as 2,182.41 points to hit 31,921.07 in morning deals, and the broader NSE Nifty 50 benchmark dropped to as low as 9,339.25, down 615.95 points…

Domestic stock markets suffered sharp losses, tracking global peers which fell even after the US central bank delivered another unscheduled rate cut. The S&P BSE Sensex index plunged as much as 2,182.41 points to hit 31,921.07 in morning deals, and the broader NSE Nifty 50 benchmark dropped to as low as 9,339.25, down 615.95 points from the previous close. A selloff across sectors hurt the markets, with financial stocks being the worst hit. Analysts say domestic fundamentals took a back seat as the coronavirus pandemic continued to spook the global markets. Here are 10 things to know about the big fall in the markets today:The markets however recovered some of those losses in the first hour of trade. At 12:00 pm, the Sensex traded 1,848 points – or 5.4 per cent – lower at 32,660, while the Nifty was down 514 points – or 5.1 per cent – at 9,448.Forty seven stocks in the Nifty basket of 50 shares moved lower at the time. Top percentage laggards were IndusInd Bank, Adani Ports, ICICI Bank, HDFC, SBI and Bajaj Finance, trading between 6.43 per cent and 12.78 per cent lower.HDFC, HDFC Bank, ICICI Bank and Reliance Industries were the top drags on Sensex, accounting for a fall of more than 950 points in the index.The NSE’s India VIX index – a gauge of the markets’ expectation of volatility in the near term – was up 10.89 per cent at the time, after soaring as much as 13.35 per cent in early deals. Yes Bank shares jumped  46 per cent to Rs 37, despite the private sector lender reporting a net loss of Rs 18,654 crore for the December quarter. A moratorium on withdrawals from Yes Bank accounts will be lifted on Wednesday.SBI Cards and Payment Services shares made a weak debut, with the stock beginning the day at a discount of 12 per cent as the worsening coronavirus scenario continued to batter the markets. SBI Cards shares opened at Rs 661 compared to the issue price of Rs 755 per share. The shares are currently trading at Rs 728.Meanwhile, equity markets in other parts of the world were hammered after emergency rate cuts in the US and New Zealand, and a raft of steps by policymakers worldwide failed to stem the rout in markets spooked by the broadening fallout of the coronavirus. MSCI’s index of Asia-Pacific shares outside Japan fell 0.5 per cent, to a level not seen since early 2017, while Japan’s Nikkei was up 0.1 per cent following an over 6 per cent decline on Friday to the lowest since late 2016 and South Korea’s KOSPI was a shade weaker.US stock futures plunged 4.8 per cent to hit their down limit before daybreak in Singapore. Australia’s benchmark stock index fell 7 per cent in the first quarter-hour of trade before paring some of the losses.Overnight in the US, the Federal Reserve cut the key interest rate by 100 basis points to a target range of 0 per cent to 0.25 per cent, saying that it would expand its balance sheet by at least $700 billion in coming weeks.Despite the gain of around 4 per cent each in S&P BSE Sensex and NSE Nifty 50 on Friday, in a dramatic recovery following an intra-day plunge of more than 10 per cent that triggered a trading halt for the first time in more than a decade.
Read More