Trading was halted for 45 minutes shortly after the opening on Friday as the benchmark indices nosedived 10 per cent each, triggering the circuit breaker. The S&P BSE Sensex was frozen at 29,687.52 – down 9.43 per cent or 3,090.62 points compared to its previous close, and the broader NSE Nifty 50 benchmark was at a more than three-year low of 8,624.05, down 966.1 points – or 10.07 per cent – from the previous close. The markets will resume trading at 10:20 am, with a pre-opening session at 10:05 am.
The lower circuit in the Indian markets was triggered for the first time since the 2008 global financial crisis. The next circuit breaker limit for the benchmark indices is at 15 per cent.
Investors continued to panic over the impact of the fast-spreading coronavirus outbreak on global growth, say analysts.
The rupee dropped to a record low on Friday, weighed down by worries over the coronavirus pandemic that has prompted investors to dump riskier assets and move towards safe havens.
Equities in other Asian markets went into a free-fall, with Japan’s Nikkei 225 index dropping 10 per cent, and heading for its worst week since the 2008 global financial crisis. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2 per cent.
Analysts say that global economy is likely to bear the brunt of the coronavirus pandemic as the number of cases soars and policymakers scramble to shield major economies from the outbreak.
The selloff gathered pace after US President Donald Trump’s announcement to ban travel from Europe spooked investors, and after the European Central Bank disappointed markets by holding back on rate cuts.
Concerns over the virus have hammered financial markets and disrupted businesses globally as countries around the world grapple with how to contain the outbreak and its economic impact.
