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Sensex crashes 807 points as coronavirus outbreak escalates worldwide

All Sensex components ended in the red, with Tata Steel cracking 6.39 per cent, followed by ONGC, Maruti, HDFC, Titan and ICICI Bank

Topics
Coronavirus | Sensex | MARKET WRAP

Press Trust of India  |  Mumbai 

Sensex
In the broader market, BSE midcap and smallcap indices sank up to 1.60 per cent

Indian stock benchmark on Monday sank nearly 807 points, the second biggest single-day fall this year, tracking sell-offs in global as cases rose exponentially outside

Starting off on a weaker note, the gauge plunged to a day's low of 40,306.36 after being caught in a panic selling as investors kept fretting over reporting of a large number of new virus cases in South Korea, Italy and Iran.

The 30-share index finally settled at 40,363.23, dropping 806.89 points or 1.96 per cent -- the second biggest one-day fall in 2020. The had plunged over 987 points on February 1 this year -- the day the Union Budget was presented.

While, the broader sank 251.45 points or 2.08 per cent to 11,829.40.

All components ended in the red, with Tata Steel cracking 6.39 per cent, followed by ONGC, Maruti, HDFC, Titan and ICICI Bank.

Sectorally, metal index tumbled nearly 6 per cent, auto 3.39 per cent and telecom 3.33 per cent. All sectoral indices closed in the red.

In the broader market, midcap and smallcap indices sank up to 1.60 per cent.

Globally, equities bore the brunt of worsening trading sentiment in the wake of rising virus cases on new regions other than

South Korea went on high alert on Sunday following a sharp jump in cases, and Italy and Iran took their own drastic containment steps.

"Demand for safe-haven assets spiked as fresh cases in South Korea and Italy indicated that business impact could be higher than thought earlier. The Trump-Modi meet is not providing clues to the market regarding trade deal but market is hoping for some hint in the future," Vinod Nair, Head of Research at Geojit Financial Services, said.

Further, the IMF also warned that the deadly epidemic could put an already fragile global economy recovery at risk.

Chinese President Xi Jinping on Sunday said the coronavirus epidemic is the country's "largest public health emergency". The death toll from the deadly virus climbed to 2,592 in on Monday.

Seoul stocks ended in deep red after South Korea reported 161 more coronavirus cases on Monday, taking the overall virus cases to 763 and making it the world's largest total outside China.

Bourses in Shanghai, Tokyo and Hong Kong also closed with significant losses.

Stock exchanges in Europe sank in opening trade with Milan's FTSE MIB plunging over 4 per cent after Italy reported its fourth death from the virus as the number of people contracting the virus continued to mount.

Brent crude oil futures dropped over 4 per cent to USD 56.10 per barrel.

On the domestic front, investors were eyeing US President Donald Trump's two-day visit to India for further cues on trade front. He reached Ahmedabad earlier in the day.

On the currency front, the Indian rupee was down 30 paise to 71.94 per US dollar.

Indian markets, which were relatively resilient till now have also started pricing in the impact of economic loss due to the spread of coronavirus with a steep fall in equity markets, experts said.

Indian corporates are expected to witness a disruption in supply chain as the manufacturing activities in China slows down considerably, they added.

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First Published: Mon, February 24 2020. 17:34 IST
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