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Tuesday, March 31, 2020

Sensex falls below 40K-level on rising coronavirus fears

The BSE Sensex settled the day with a loss of 392.24 points, or 0.97 per cent, at 39,888.96 — the lowest closing in over three weeks — after plunging over 521 points intra-day.

By: ENS Economic Bureau | Mumbai | Published: February 27, 2020 1:16:10 am
BSE Sensex, Sensex NIFTY, India stock market coronavirus The broader NSE Nifty plunged 119.40 points, or 1.01 per cent, to end at 11,678.50 — its worst level since February 3. The NSE index has shed 402.35 points, or 3.33 per cent, in the last four days.

Indian stock markets plunged for a fourth session in a row on Wednesday as a sustained sell-off in global markets amid emergence of more coronavirus cases underscored the risk posed to the global economy.

The BSE Sensex settled the day with a loss of 392.24 points, or 0.97 per cent, at 39,888.96 — the lowest closing in over three weeks — after plunging over 521 points intra-day. In the past four sessions, the Sensex has lost 1,281 points, or 3.11 per cent, mainly due to the virus fears.

The broader NSE Nifty plunged 119.40 points, or 1.01 per cent, to end at 11,678.50 — its worst level since February 3. The NSE index has shed 402.35 points, or 3.33 per cent, in the last four days.

“Increasing concern regarding coronavirus in the world over is impacting global market. The economic impact is expected to be worse than thought earlier, forcing investors to stay away from risky assets,” Vinod Nair, head of research, Geojit Financial Services, said. “The domestic market is bracing for yet another subdued GDP growth, with a forecast of 4.6 to 4.7 per cent in Q3 compared to 4.5 per cent in Q2, which is adding to the fear,” he added.

S Ranganathan, head of research, LKP Securities, said, “The spreading of coronavirus globally continued to grip markets today as well with Nifty shedding a further 120 points. Barring select sectors like chemicals, almost all sectors wilted under selling pressure as investors booked profits.”

Investors are concerned about how the coronavirus is weighing on consumer demand, manufacturing supply chains and major economies around the world. The coronavirus spread could cost China, the world’s second biggest economy, tens of billions of dollars in lost growth this quarter alone.

Major outbreaks in Japan, Italy and South Korea underscore the risk posed to other big economies from the virus.

In the BSE pack, Sun Pharma was the top loser, followed by Maruti, L&T, Hero Motocorp, Infosys, ONGC and RIL. On the other hand, SBI, HUL, HCL Tech, Asian Paints, and Ultratech Cement ended with gains.

Sectorally, BSE realty, auto and capital goods were among the top losers, dropping as much as 2.16 per cent. Barring telecom, all sectoral indices closed in the red. In the broader market, BSE midcap and smallcap indices fell up to 1.34 per cent.

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