Sensex, Nifty crash over 7% on coronavirus fears: 10 things to know
In terms of sectors, all indices traded majorly bearish, with media stocks dropping 8.5%, PSU bank 8.2%, metal and realty down 7.5%, auto down 6%. Meanwhile, all other indices were down 5% each.
- Mar 12, 2020,
- Updated Mar 12, 2020 1:21 PM IST
It was a bloodbath on Dalal Street on Thursday, with BSE Sensex and NSE Nifty crashing almost 7%, in line with slump in overseas markets amid coronavirus fears.
Domestic markets suffered worst single-day losses as investors turned jittery after World Health Organisation declared the coronavirus a pandemic, heightening fears of a global recession.
Although globally policymakers have announced various measures to combat the pandemic, equity market investors are hardly convinced that those measures will turn around the global economy. Now, coronavirus infection has reached 120 countries. Besides the virus scare, domestic investors also awaited official numbers of Consumer Price Index (CPI) and Index of Industrial Production (IIP), to be released later in the day.
1. Sensex plummeted over 1,800 points and the broader Nifty gave up the 10,000 level in the opening session and later hit its fresh 52-week low. While 30-share index BSE Sensex hit a fresh 52-week low falling 2,707 points lower to 32,990.01, Nifty dropped 799 points to the intraday low of 9,648.
2. Stocks worldwide crumbled today following the strong bearish trend from US indices after the World Health Organisation declared the new coronavirus a pandemic. WHO said that with over 121,000 infections globally, coronavirus that causes COVID-19 had become a pandemic. The specialised agency of the United Nations also expressed deep concern over the "alarming levels of inaction".
3. Overseas, Asian equity markets fell majorly, reacting to the WHO's announcement, and dropped further after Trump's address of travel ban. US stocks were slammed on Wednesday after the World Health Organisation declared the new coronavirus a pandemic. The Dow Jones Industrial Average fell 5.86%, the S&P 500 4.89% and the Nasdaq Composite dropped 4.7%. Following the trend from Wall Street, Tokyo dropped more than 5%, while Hong Kong, Sydney, Seoul, Wellington, Taipei, Jakarta and Manila all tanked more than 4%. Meanwhile, Australia's benchmark dived 3.7% while South Korea's Kospi fell 2.7% to a four-year low. US Futures (Dow Jones) traded at 22576, down 999 points or 4.24%.
4. All Sensex components were trading in red on Thursday. Axis Bank, ONGC and Tata Steel dropped 10% each, followed by Tata Steel 9%. SBI, Titan and M&M fell 8% and L&T, Reliance Industries were down 7%. In terms of sectors, all indices traded majorly bearish, with media stocks dropping 8.5%, PSU bank 8.2%, metal and realty down 7.5%, auto down 6%. Meanwhile, all other indices were down 5% each.
5. NSE VIX index, which reflects rising volatility in the market, zoomed 9.84% to 34.66. Market capitalisation on BSE fell to Rs 129.92 lakh crore compared to Wednesday's market cap of Rs 137.13 lakh crore.
6. As US oil supplies increased for a seventh straight week, prices plunged about 6% on Thursday. West Texas Intermediate slipped 6.2 per cent to $31 a barrel while Brent crude was off 5.8 per cent at under $34 a barrel.
7. Amid the drastic fall in equity markets, Rupee, the local currency was trading 61 paise lower at 74.25 per dollar versus previous close of 73.64. It later plunged 82 paise to 74.50 against US dollar within a few minutes of opening.
8. Market participants were nervous following a Reuters report that the White House had ordered top-level coronavirus meetings to be classified. Moreover, President Trump announced on Wednesday the United States will suspend all travel from Europe, except the United Kingdom, to the United States for 30 days starting on Friday over the coronavirus pandemic. This further refuelled concerns about the impact of the coronavirus outbreak.
9. Market participants were hurt more with Goldman Sachs predicting the end of a long bull market. The investment bank and financial services company on Wednesday called time the S&P 500's 11-year bull run, the longest on record, is likely to end with a drop of 28%to 30% from the record highs set last month, amid the coronavirus outbreak and oil crash.
10. The Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains. It has now reached almost 124 countries, causing around 4,630 deaths, with the number of infected cases rising to 126,136 today. Of this, 68,219 have recovered. The reported number of infected cases from coronavirus in India has risen to 73 on Thursday.
Coronavirus infection: Share market investors lose Rs 33 lakh crore in a month
It was a bloodbath on Dalal Street on Thursday, with BSE Sensex and NSE Nifty crashing almost 7%, in line with slump in overseas markets amid coronavirus fears.
Domestic markets suffered worst single-day losses as investors turned jittery after World Health Organisation declared the coronavirus a pandemic, heightening fears of a global recession.
Although globally policymakers have announced various measures to combat the pandemic, equity market investors are hardly convinced that those measures will turn around the global economy. Now, coronavirus infection has reached 120 countries. Besides the virus scare, domestic investors also awaited official numbers of Consumer Price Index (CPI) and Index of Industrial Production (IIP), to be released later in the day.
1. Sensex plummeted over 1,800 points and the broader Nifty gave up the 10,000 level in the opening session and later hit its fresh 52-week low. While 30-share index BSE Sensex hit a fresh 52-week low falling 2,707 points lower to 32,990.01, Nifty dropped 799 points to the intraday low of 9,648.
2. Stocks worldwide crumbled today following the strong bearish trend from US indices after the World Health Organisation declared the new coronavirus a pandemic. WHO said that with over 121,000 infections globally, coronavirus that causes COVID-19 had become a pandemic. The specialised agency of the United Nations also expressed deep concern over the "alarming levels of inaction".
3. Overseas, Asian equity markets fell majorly, reacting to the WHO's announcement, and dropped further after Trump's address of travel ban. US stocks were slammed on Wednesday after the World Health Organisation declared the new coronavirus a pandemic. The Dow Jones Industrial Average fell 5.86%, the S&P 500 4.89% and the Nasdaq Composite dropped 4.7%. Following the trend from Wall Street, Tokyo dropped more than 5%, while Hong Kong, Sydney, Seoul, Wellington, Taipei, Jakarta and Manila all tanked more than 4%. Meanwhile, Australia's benchmark dived 3.7% while South Korea's Kospi fell 2.7% to a four-year low. US Futures (Dow Jones) traded at 22576, down 999 points or 4.24%.
4. All Sensex components were trading in red on Thursday. Axis Bank, ONGC and Tata Steel dropped 10% each, followed by Tata Steel 9%. SBI, Titan and M&M fell 8% and L&T, Reliance Industries were down 7%. In terms of sectors, all indices traded majorly bearish, with media stocks dropping 8.5%, PSU bank 8.2%, metal and realty down 7.5%, auto down 6%. Meanwhile, all other indices were down 5% each.
5. NSE VIX index, which reflects rising volatility in the market, zoomed 9.84% to 34.66. Market capitalisation on BSE fell to Rs 129.92 lakh crore compared to Wednesday's market cap of Rs 137.13 lakh crore.
6. As US oil supplies increased for a seventh straight week, prices plunged about 6% on Thursday. West Texas Intermediate slipped 6.2 per cent to $31 a barrel while Brent crude was off 5.8 per cent at under $34 a barrel.
7. Amid the drastic fall in equity markets, Rupee, the local currency was trading 61 paise lower at 74.25 per dollar versus previous close of 73.64. It later plunged 82 paise to 74.50 against US dollar within a few minutes of opening.
8. Market participants were nervous following a Reuters report that the White House had ordered top-level coronavirus meetings to be classified. Moreover, President Trump announced on Wednesday the United States will suspend all travel from Europe, except the United Kingdom, to the United States for 30 days starting on Friday over the coronavirus pandemic. This further refuelled concerns about the impact of the coronavirus outbreak.
9. Market participants were hurt more with Goldman Sachs predicting the end of a long bull market. The investment bank and financial services company on Wednesday called time the S&P 500's 11-year bull run, the longest on record, is likely to end with a drop of 28%to 30% from the record highs set last month, amid the coronavirus outbreak and oil crash.
10. The Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains. It has now reached almost 124 countries, causing around 4,630 deaths, with the number of infected cases rising to 126,136 today. Of this, 68,219 have recovered. The reported number of infected cases from coronavirus in India has risen to 73 on Thursday.
Coronavirus infection: Share market investors lose Rs 33 lakh crore in a month