Stock markets suffered sharp losses on Monday with benchmark indices slumping more than 4 per cent tracking a selloff in global markets, as investors panicked about the severity of coronavirus pandemic amid fears of recession. The S&P BSE Sensex index plummeted as much as 1,718.81 points to hit 35,857.81 on the downside in mid-morning deals, and the broader NSE Nifty benchmark slumped to as low as 10,525.45, down 464 points from the previous close. A selloff across sectors – led by financial, metal, energy and IT stocks – weighed on the markets.
The Sensex traded 1,504.58 points – or 4.00 per cent – lower at 36,072.04 while the Nifty was down 417.35 points – or 3.80 per cent – at 10,572.10. All the 11 sectoral indices traded sharply lower, with the Nifty Bank – comprising stocks of 12 major lenders in the country – down 4.11 at the time.
Forty six stocks in the Nifty basket of 50 shares struggled against losses at the time. Worst hit in percentage terms were ONGC, Vedanta, Reliance Industries, Zee Entertainment, IndusInd Bank and Tata Steel, down between 5.96 per cent and 10.62 per cent each. On the other hand, Yes Bank and Bharat Petroleum managed gains, up 18.27 per cent and 10.79 per cent respectively.
Analysts who have been tracking coronavirus news over past few weeks say the pandemic is a huge negative in the near term, and further market correction cannot be ruled out for the time being.
US and European market futures pointed to sharp losses. Wall Street E-Mini futures were down 4.6 per cent, while Europe’s EUROSTOXXX 50 and FTSE futures tumbled 4.4 per cent and 4.8 per cent respectively. Crude oil prices nosedived 31.5 per cent to $31.02 a barrel in their biggest percentage slump since the start of the first Gulf War.
