New Delhi: Concerns over the coronavirus outbreak has severely impaired the global economy as it has of late weighed on the investor sentiments across markets. The BSE Sensex dropped over 2,400 points on Thursday.
The bear markets made an unprecedented comeback on March 12 taking benchmark indices to a 27-month low after World Health Organisation declared the novel coronavirus outbreak a global pandemic.
The benchmark indices saw a sharp fall in the opening, mirroring global peers. The BSE Sensex was down 2,103.05 points or 5.89% to 33,594.35, while the Nifty50 started trading below all psychological levels — 10,000 and 9,900 -, falling 636.10 points or 6.08% to 9,822.30.
The market has fallen more than 22% from its record high touched in January this year.
The Indian rupee on Thursday weakened to a 17-month low of 74.34 per US dollar as global markets slumped. It has however, somewhat recovered from the lows to trade around 74.14 per greenback.
Investors’ wealth over Rs 11.27 lakh crore was wiped off in early trade on Thursday. Traders said besides global rout, incessant foreign fund outflows also weighed on investor sentiments.
India also suspended almost all visas and closed land border with Myanmar until April 15. Exemptions are only for diplomatic and official visas as well as employment visas.
All sectoral indices fell sharply with Nifty Bank, Auto, Metal, FMCG, IT, Pharma, Energy, Infra and Realty declining 5.5-9%.
The sharp rise in volatility clearly indicated that the market is expected to remain in control of bears. India VIX jumped to a six-year high of 35.28 levels, up 12%. The market breadth was pathetic as nearly 14 shares declined for every share rising on the BSE. In the Sensex 30 and Nifty 50, all stocks traded in the red.
However, according to reports, experts believe the markets will make a comeback, albeit in the long run.
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