Sensex Crashes 2919 points, Nifty Ends at 9,590 Points; Lowest Level Since June 2017
Again a dark day in Indian markets as S&P BSE Sensex and NSE Nifty 50 suffered their biggest single-day selloff ever in absolute terms. The investor segment has been shaky especially because of the coronavirus outbreak. Nifty 50 crashed as much as nine per cent r 950 points to 9,508 during the session, marking the lowest level recorded since June 2017.
Several analysts claim that the global economy will lead to recession and as of now, 1,00,000 people have been infected by the deadly coronavirus across the world. Commenting on this, A.K Prabhakar, Head of Research, IDBI Capital, says, "The markets are already in a bear phase (20 per cent off-peak). The Nifty is far away from the 200-day simple moving average. The lockouts around the world are spooking the markets. Markets will not recover in a hurry and investors should not buy anything. Apart from virus, multiple factors are adding stress to our markets. These are difficult times there can be a sharp recovery but that will be sold into." [source: NDTV]
Tata Consultancy Services, HDFC Bank, Reliance Industries, HDFC, ICICI Bank, Infosys, ITC and Axis Bank were the biggest drags on the Sensex. Shares in the Nifty 50 basket, 27 of them closed at a new 52-week low level and Yes Bank was the top Nifty loser, the stock fell 13 per cent. Also, UPL, Vedanta, Hindalco, ONGC, State Bank of India, GAIL India, Axis Bank, ITC, Bajaj Finserv, Tata Motors, Grasim Industries, Adani Ports and Indian Oil among the other losers down between 10-12.95 per cent each.
Market Expert, Ajay Bagga states, “Technical bounce is expected next week but overall the sentiment is wiped out and we expect markets go down further. Corporate earnings in the next quarter will be bad and dimension for global markets have changed”.