Sensex Today: Sensex crashes 2,919 points; Nifty finishes below 9,600: key points in the worst drop of a day | India Business News
Sensex lost 2,919 points or 8.18 percent to close 32,778; while the broader NSE Nifty plummeted 868 points or 8.30 percent to settle at 9,590.
The main laggards in the BSE package include Tata Steel, Axis Bank, ONGC, SBI, Mahindra & Mahindra and Reliance Industries with their stocks slipping as much as 13.23 percent.
On the NSE, all sub-indices witnessed large losses with Nifty PSU Bank, Media and Realty up to 13.16 percent. Nifty fell below the 10,000 mark for the first time in more than two and a half years.
Here are key things to know about the drop in the stock markets:
* Coronavirus infects the indices
The stock market entered bearish territory when the World Health Organization (WHO) declared the coronavirus (Covid-19) as a pandemic. So far, the virus has claimed more than 4,200 lives worldwide.
The bear market is a condition when an index falls more than 20 percent from recent highs. The 30-share BSE package has lost more than 9,000 points after hitting a record 42,274 on January 20 of this year.
India announced on Wednesday that it will suspend a large majority of visas to the country to contain the virus, as cases across the region continued to rise.
* What analysts said
According to analysts, equity benchmarks ditched most gains as nervousness increased among investors amid the rapidly increasing coronavirus cases in the country and mixed signals from global markets.
“The fact that the WHO has called the outbreak a pandemic is cause for concern for investors, especially as this occurs in a context of slowdown in the Indian economy,” said Gaurav Dua, head of capital market strategy at Sharekhan. , to Reuters news agency. .
* Investors lose more than Rs 11 lakh crore
The butcher shop on Dalal Street eroded investor wealth worth Rs 11,27,160.65 crore, bringing the total market capitalization (m-cap) to Rs 1,25,86,398.07 crore on BSE. The ceiling for companies listed on the EEB stood at Rs 1.37,13,558.72 crore at the end of trading on Wednesday.
* The largest single day falls recorded in sensex
* Sale of FPI
On a net basis, foreign institutional investors sold shares worth Rs 3,515.38 million, while domestic institutional investors bought shares worth Rs 2,835.46 million on Wednesday, data available on the stock exchanges showed. values.
* Global sale
Global stocks also collapsed after United States President Donald Trump shocked investors by announcing a temporary ban on travel from Europe in an effort to curb the spread of the coronavirus, threatening more disruptions for businesses and the worldwide economy.
* Rupee drop
The Indian rupee fell 82 paise to 74.50 against the US dollar in early trading. Forex traders said market participants were nervous amid growing fears of a coronavirus-led economic slowdown.
The weak opening of national shares and the outflow of foreign funds also dragged the local unit, they added.
(With contributions from the agency)