The benchmark equity indices on the BSE and National Stock Exchange (NSE) registered their worst single-day fall in history after they settled around 13 per cent lower on Monday amid lockdowns and curfew across various parts of the country to combat the coronavirus pandemic.
Both the frontline indices had hit their 10 per cent lows during the early morning deals triggering a circuit breaker, following which the trade was suspended for a period of 45 minutes. After the trade resumed, the indices extended their losses and slipped as much as per cent in the last hour of trade.
This is the second time during this month that trading was halted because of fears over the spread of coronavirus which has threatened to bring world economies to a halt.
The S&P BSE Sensex declined 3,934.72 points (13.15 per cent) to settle at 25,981.24, while the broader Nifty 50 fell 1,135.20 points (12.98 per cent) to end at 7,610.25. This was the worst performance for both the benchmarks in their history.
During the day, the 30-share BSE benchmark had crashed a whopping 4,035.13 points (13.49 per cent) to hit an intraday low of 25,880.83. The 50-share NSE benchmark too had cracked 1,161.85 points (13.29 per cent) to a low of 7,583.60. In the morning, the Sensex had crashed 2,991.85 points (10 per cent) to hit 26,924.11, while the Nifty fell 842.45 points (9.63 per cent) to slip to 7,903.00, following which trading got suspended for 45 minutes. Both the indices had opened over 8 per cent lower today.
All the Sensex stocks ended in a sea of red on Monday. Axis Bank was the worst performer of the day slipping 28 per cent. It was followed by Bajaj Finance (down 23.57 per cent) and IndusInd Bank (23.5 per cent).
Here’s how the Sensex stocks performed:
Likewise, all the sectoral indices on NSE too ended in the negative territory. The Nifty Bank index posted its worst day in history, crashing over 16 per cent weighed by Axis Bank, IndusInd Bank and ICICI Bank. Apart from the Bank Nifty, the Nifty Financial Services index too cracked over 15 per cent, while the Nifty Auto Index ended over 14 per cent lower.
Here’s how the sectoral indices performed:
Coming to the broader markets, the S&P BSE 500 index fell -1,463.17 points (12.88 per cent) to settle at 9,896.25. Among other indices, the S&P BSE MidCap slipped 1,429.94 points (12.83 per cent) to end at 9,711.44, while the S&P BSE SmallCap index settled at 8,872.83, down 1,240.53 points (12.27 per cent).
“With the spread of Covid-19 continuing unabated and the fears of global recession increasing, the Indian markets crashed. The markets closed much lower in percentage terms compared to the Asian and European markets, which indicated increased uncertainty regarding the spread of the virus in India after the government indicated that the country was in a crucial phase in its fight against the virus. Further measures and lockdowns are expected after manufacturing companies indicated that they would shut down their facilities, which would have an overall impact on business activity and market confidence,” Vinod Nair, Head of Research at Geojit Financial Services said in a post-market update.
The Indian rupee fell below the 76-mark against the US dollar for the first time on Monday. Slipping to an all-time intraday low of 76.2088 against the greenback, the domestic unit was last seen hovering around 76.09-76.10 level in the late afternoon deals. The domestic currency had settled at 75.1950 against the dollar on Friday, data by Bloomberg showed.
Globally, financial markets around the world took another hammering on Monday as a rising tide of national coronavirus lockdowns threatened to overwhelm policymakers’ frantic efforts to cushion what is likely to be a deep global recession.
European stocks dived 4.5 per cent as they reopened and commodity markets also saw more heavy selling as the global death toll from the virus passed 14,000.
Investors tried to take cover in ultra-safe government bonds and in the Japanese yen in currency markets but with so much uncertainty about when any semblance of normality might return there were few places to really hide.
E-Mini futures for the S&P 500 dived 3.5 per cent and MSCI’s main world stocks index was down 1.6 per cent and almost at 4-year lows.
In Asian trade, MSCI’s broadest index of Asia-Pacific shares outside Japan lost 5.4 per cent, with New Zealand’s market shedding a record 10 per cent at one point as the government closed all non-essential businesses.
Shanghai blue chips dropped 3.3 per cent, though Japan’s Nikkei rose 2.0 per cent aided by expectations of more aggressive asset buying by the Bank of Japan. In Australia, the S&P/ASX200 dropped 5.62 per cent to take the index to a seven-year low.
– With global market inputs from Reuters