Sensex loses 1203 points, Nifty 343 points on 1st day of FY-21, shares hit 52-week low

On first day of Financial year 2020-21, with sharp rise in India's Coronavirus (COVID-19) cases amid 21-day nationwide lockdown to 1637 positive cases, Indian stock markets plummeted on Wednesday. According to PTI, Sensex plunged by 1,203.18 points to end at 28,265.31 while Nifty tanked 343.95 points to close at 8,253.80. About 937 shares have advanced, 1075 shares declined, and 131 shares are unchanged, as per market reports.

Fact check: Is financial year 2020 extended by Indian Government?

Sensex crashes by 1203 points

Experts state that Nifty is down 30% from its recent record high of 12,430 hit on January 20, as almost 45 of Nifty 50 companies have hit ir multi-year low amid global pandemic COVID-19. Moreover, reports state that 90% of companies hit ir 52-week low in March as India saw rise in cases and record drop in demand. Foreign institutional investors (FIIs) have also pulled out more than Rs 60,000 cr investment from Indian equity market in March alone and MSCI has deferred its decision on increasing foreign inclusion factor (FIF) for Indian markets, as per reports - affecting markets negatively.

Banks implement EMI moratorium anunced by RBI, allow installments deferment till May 31

This development comes after Reserve Bank of India (RBI) anunced furr measures for dealing with COVID-19 pandemic which included extension of realisation period of export proceeds, review of limits of Way and Means advances of States/UTs and implementation of countercyclical capital buffer. RBI has assured that Central Bank can provide eugh liquidity in market amidst COVID-19 crisis and has also anunced a moratorium on all installments for a period of 3 months. India's current COVID-19 tally stands at 1637, with 38 deaths.

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Why are markets falling - hit by Coronavirus?

fear of virus has disrupted business supply chains, while number of positive cases has hit 872, 972 across world. Moody’s have estimated that coronavirus has increased risk of a global recession as advanced countries United States, Japan, Germany, Italy, France, Britain, and Korea battle virus, but UN has claimed that India and China may be spared. 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. Currently, US which is epicenter of pandemic has extended its social distancing restrictions till April 30.

Coronavirus hits Indian stock markets: Sensex loses 1941 pts; most in one day for 10 years

 Or factors that have affected markets in India are fall in crude oil prices as even domestic crude prices have fallen down to an 18-year low, with major Oil managing companies' shares hitting to a 52-week low.  Oil prices have reportedly slumped by 60% - lowest since 1991 after Saudi Arabia slashed its prices in an alleged price war with Russia. Both countries are w reportedly set to increase production dramatically this month, after an agreement between OPEC and its allies to lower output expired at end of March.