Indian markets went through a meltdown on Thursday as Sensex is poised for its biggest fall since 2008 while Nifty dropped below 9,600 for the first time since July 2017.
Domestic markets nosedived deeper into bear territory after coronavirus(Covid-19) outbreak was declared a pandemic by the World Health Organization.
Sensex was trading down by nearly 3,000 points at about 14:50 pm and has dropped below 33,000 points. Nifty, too, went down sharply to fall below 9,600 level. It is one of the biggest stock markets scares that India has seen in a long time.
In addition to the indexes, all sectoral indices have been trading in red as investors are bracing for further effects from the virus outbreak. Absolute chaos has existed on Dalal Street since morning when a significant share of investor capital was wiped off the financial markets.
Today’s freefall on the domestic stock market was correlated with global markets as US benchmark Daw Jones and other European stocks dropped sharply on expectations of rising global cases. Asian stocks were also bearish as a result of the heightened uncertainty resulting from the outbreak. HDFC Bank, Reliance Industries, HDFC, ICICI Bank and ITC were among the top losers in today’s trading session.
Aviation and tourism companies’ shares have plummeted after India briefly suspended all visas for visitors until April 15. The United States has also stopped all journeys to Europe until the transmission of the virus decreases.
India announced a total of 73 confirmed cases and precautionary steps are being taken by the government to prevent further spread of the deadly virus. Global diseases, meanwhile, have risen to nearly 1,20,000 while the death toll has gone through 4,500. In India, no deaths have yet been reported.