INSUBCONTINENT EXCLUSIVE:
MUMBAI: The domestic equity market witnessed another day of bear hammering as risk was out of vogue and global markets continued to melt in
the light of the relentless spread of coronavirus pandemic.
BSE barometer Sensex dropped 2.01 per cent or 581 points to close at 28,288 on
Thursday, while its NSE counterpart Nifty fell 2.35 per cent or 199 points to close at 8,270.
Earlier in the day, the 30-share Sensex had
declined as much as 7.46 per cent or 2,155 points to 26,714 while the 50-share Nifty had shed 7.51 per cent or 636 points to 7,833.
The
indices briefly entered the positive territory but could not hold on to the gains, tracking weakness in US stock futures.
The rupee too
slipped past the psychologically-important 75-mark against the US dollar
At 3:30 pm, it was down 0.87 per cent at 75.10 against the greenback.
Amid the uncertainty in the market, cash has emerged as king as all
asset classes including gold have seen sharp falls
Investors are racing to preserve their capital and are cashing out their investments.
Stocks, bonds, gold and commodities have fallen in a
secular selloff as the world struggles to contain coronavirus and investors and businesses scramble for hard cash.
Till the time of writing
this copy, India has registered three deaths and 169 positive cases
Last week, the World Health Organisation (WHO) declared coronavirus as a pandemic
Globally, more than 2,00,000 confirmed cases have been reported and nearly 9,000 people have lost their lives due to the disease.
Unabated
selling by foreign institutional investors (FIIs) has also weighed heavily on the domestic indices
FIIs have sold a net of $4.9 billion of shares so far this month, and this may be the highest such selloff by the investor class
ever.
Markets at a glanceThe bears continued to be in control with more than three shares declining for every share than advanced on the BSE
As many as 1,205 companies tested 52-week lows on the BSE.
Volatility remained high on D-Street with India VIX rising 12.5 per cent to
71.95, its highest level since November 26, 2008.
The broader market was equally badly hammered, with BSE 500 declining nearly 3 per cent
BSE Midcap and BSE Smallcap dropped 3.70 per cent and 4.53 per cent respectively.
All sectoral indices, barring BSE Telecom, closed lower
BSE Metal index was the biggest loser and it shed 7.17 per cent
Aluminum major Hindalco was the worst performer in the index as it dropped 9.56 per cent.
A total of 22 Sensex stocks closed lower with
while private lenders ICICI Bank and Axis Bank shed 5.98 per cent and 9.50 per cent respectively
parent company InterGlobe Aviation dropped 4.56 per cent even as it said it will cut salaries of senior employees to tide over the crisis
caused by coronavirus.
Indian Railway Catering and Tourism Corporation (IRCTC) hit 5 per cent lower circuit as Indian Railways cancelled 155
further impact from Covid-19 and prefer cash instead of investments
All asset classes are seeing downward pressure
FIIs have also been net sellers to the tune of Rs.40,000 crore this month, further putting pressure on the markets
ServicesGlobal marketsThe US dollar surged, bonds plunged and Asian markets struggled to find their footing on Thursday as the European
from the lowest close since June 2013.