Benchmark indices ended lower on Monday with Nifty slipped below 9,200 level on the back of increasing fears of Coronavirus.
At close, the Sensex was down 2,713.41 points or 7.96% at 31390.07, and the Nifty was down 757.80 points or 7.61% at 9197.40. About 430 shares have advanced, 1987 shares declined, and 152 shares are unchanged.
IndusInd Bank, JSW Steel, Tata Steel, Vedanta and HDFC were among major losers on the Nifty, while Yes Bank is the only gainers.
Shares of RBL Bank plunged over 24 percent to hit their fresh all-time low of Rs 156.45 on BSE and looked on course to extend their losing run into the third consecutive session on March 16.
The markets are showing no signs of stability as the economic impact of the Coronavirus is likely to be significant for many major economies. Even after US Fed’s slashing of interest rates to a range of 0% to 0.25% and the introduction of a USD 700 billion stimulus programme, investor sentiments remain weak.
On the domestic front too, certain measures are expected from the government and RBI to protect the economy. However, given the uncertainty and increasing spread of the virus domestically, we expect that current choppiness could continue in the coming days.
The RBI has been taking some calibrated measures to ensure financial markets and institutions remain sound and resilient. The RBI propose to conduct another 6 months US dollar/ Rupee sell-buy swap on March 23.
It will also conduct LTRO in multiple tranches upto a total amount of Rs 1 lakh crore at the policy rate. This will be followed by a review of performance of LTRO.
n the mayhem, the Sensex plummeted over 2,713.41 points or or 7.96 percent to close at 31,390.07 and the Nifty also tanked 758 points to end at 9,197.40. lower
Representational image. News18
All Sensex components ended in the red. IndusInd Bank was the top loser, followed by Tata Steel, HDFC, ICICI Bank, Axis Bank, Infosys and ITC.
According to traders, market became more volatile after the Reserve Bank of India’s (RBI) surprise press conference announcement.
Many analysts, over the past week, have said the RBI has legroom to cut rates to the tune of 65 bps by June. Some like Barclays and BofA have also spoken about the likelihood of an inter-meeting cut (before the April 3 policy meeting).
Global markets have been roiling in fears of a global economic recession led by restrictions in wake of the coronavirus (COVID-19) pandemic.
