Equity indices slump as metal stocks drag on worries over China's coronavirus

Equity markets traded with a negative bias on Tuesday as across-the-board selling pressure built up with the spread of coronavirus in China, leading investors globally to a shift from riskier assets to safe havens.

While Asian peers dropped on growing fears about the virus outbreak's economic impact, domestic investors said Indian bourses are expected to remain volatile until the announcement of Union Budget on Saturday.

The BSE S & P Sensex closed 188 points lower at 40,967 while the Nifty 50 was down by 59 points at 12,060. Most sectoral indices at the National Stock Exchange were in the red with Nifty metal dipping by 2.39 per cent, auto by 1.23 per cent and PSU bank by 0.62 per cent.

Among stocks, metal majors were the worst sufferers with Vedanta down by 4.5 per cent at Rs 142.10 per share. Tata Steel fell by 2.9 per cent and JSW Steel by 2.8 per cent.

Auto majors too took a beating with Tata Motors edging lower by 3.2 per cent and Maruti Suzuki by 2.1 per cent. Index heavyweight Reliance Industries fell by 2.2 per cent to close at Rs 1,473.50 per share.

However, those which witnessed gains included Bharat Petroleum Corporation, HDFC, Bajaj Finance, Bajaj Finserv and Sun Pharma.

Meanwhile, Asian stocks extended a global selloff as China took more drastic steps to combat a deadly coronavirus. As the death toll reached 106 in China, some health experts questioned whether Beijing can contain the virus which has spread to more than 10 countries.

Japan's Nikkei was down by 0.55 per cent while South Korea's Kospi index skidded by 3.09 per cent.