Published 15:10 IST, March 9th 2020
Coronavirus hits Indian stock markets: Sensex loses 1941 pts; most in one day for 10 years
In a massive development, amid the increase in cases of Coronavirus in the country, the domestic stock markets on Monday fell to a 10-year single day low
- Republic Business
- 3 min read
Update at 4:00 PM:
Sensex closed down by 1,941.67 points or 5.17% at 35634.95, while Nifty was down 538.00 points or 4.90% at 10451.50, as per reports.
In a massive development, amid the increase in cases of Coronavirus in the country, the domestic stock markets on Monday fell to a 10-year single day low by more than 6%. Analysts state that amid the severity of coronavirus going pandemic, the BSE Sensex index plummeted as much as 2,366.26 points to hit 35,210.36 during the session. Meanwhile, the NSE Nifty index slumped to as low as 10,327.05, down 662.4 points from the previous close.
Sensex hits 10-year low amid Coronavirus outbreak
Since the outbreak of the Coronavirus in the Chinese province of Wuhan, global markets have been severely hit with the standstill in trade. Analysts have stated that there is heightened volatility in global markets amid concerns over the rapidly-spreading coronavirus and sinking crude prices with them intending to sell-off. Several core sectors like led by financial, metal and energy stocks have been hit particularly - Reliance Industries shares have slumped by 11% - its worst single-day fall in at least 10 years.
Why are markets falling - hit by Coronavirus?
As per the latest Indian figures, the number of cases have risen to 43 as four new cases emerged from Kerala, Delhi, Uttar Pradesh, and Jammu. The 43 that have been tested for the novel Coronavirus have been found positive from the 3,003 samples that were tested in the country. Out of these 40 are active cases, the initial three which were reported from Kerala have been treated and discharged.
The fear of the virus has disrupted business supply chains, while the number of positive cases has hit 107,000 across the world. Last week Moody’s estimated that coronavirus has increased the risk of a global recession as advanced countries United States, Japan, Germany, Italy, France, Britain, and Korea battle the virus. Analysts have said that as China is largest supplier of raw materials and manufacturing hub for different industries - core industries like automobiles, metal and pharmaceuticals' trade have been brought to a standstill due to China closing off its borders.
Other factors that have affected markets in India are the fall in crude oil prices as even domestic crude prices have fallen down from $64/barrel in January to $55/barrel in February, as per reports. Oil prices have reportedly slumped lowest since 1991 after Saudi Arabia slashed its prices in an alleged price war with Russia. The other factor which has panicked investors is the Yes Bank moratorium, in spite of the company's shares picking up after SBI stepped in to buy 49% of stake in the company along with a consortium of other investors.
Updated 17:54 IST, March 9th 2020