Markets

Markets bleed, Sensex dives 4,000 points

A lady walks in front of a digital screen inside the BSE building as the Sensex goes down in Mumbai on March 23, 2020.

A lady walks in front of a digital screen inside the BSE building as the Sensex goes down in Mumbai on March 23, 2020.   | Photo Credit: PTI

BSE Sensex plummetted 3,934.72 points or 13. 15% to 25,981.24; NSE Nifty nosedived 1,135.20 points or 12.98% to settle at 7,610.25

With the country in a virtual lockdown mode and companies announcing temporary shutdowns over the COVID-19 outbreak, the stock market went into a free fall mode on Monday and benchmarks registered their biggest single-day fall in both absolute and percentage terms.

The Sensex hit its 10% lower circuit in the very first hour of the trading session, resulting in a 45-minute trading halt for the second time this month. The Nifty had hit the 10% circuit breaker on March 13.

Also read: Sensex breathes easy, surges 5.8% as DIIs inject ₹4,367 crore

The reopening of the session provided no respite either as the Sensex plunged over 4,000 points — 4,035.13 to be precise — to touch a low of 25,880.83, before ending the day at 25,981.24, down 3,934.72 points, or 13.15%.

All the Sensex constituents ended the day with heavy losses, with most of them currently trading at multi-year lows.

As many as 21 stocks in the Sensex pack lost over 10%, with financial sector heavyweights, including Axis Bank, ICICI Bank, Bajaj Finance, and State Bank of India, along with Maruti Suzuki India, Bajaj Auto and Reliance Industries contributing significantly to the day’s fall.

 

More than 2,000 stocks lost ground on BSE, as against only 214 gainers. The sectoral index representing banking was the worst performer of the day, losing nearly 17%.

Also read: Sensex nosedives 2,713 points, Nifty gives up 9,200-mark

Meanwhile, the broader Nifty ended the day at 7,610.25, shedding 1,135.20 points or 12.98%.

Foreign portfolio investors (FPIs) continued to be net sellers at nearly ₹3,000 crore, adding to their record sales of nearly ₹53,000 crore in the current month.

Market players believe that the fall is not done yet as the number of coronavirus cases is only increasing with each passing day and as more States initiate lockdowns, companies will take a massive hit in the fourth quarter earnings.

”We believe that this is not yet done with and recovery will take a long time with lingering pain on the economy and investors,” said Prasanna Pathak, Head - Equity & Fund Manager, Taurus Mutual Fund.

 

“India was already on a sticky wicket with a rapidly slowing economy prior to the outbreak. Hence investors are pinning their hope entirely on the monetary and fiscal measures which the government might take in the next few weeks,” added Mr. Pathak.

Incidentally, a media report on Monday quoted the Organisation for Economic Co-operation and Development (OECD) secretary general Angel Gurría as saying that the economic shock of the coronavirus pandemic was bigger than the 2008 financial crisis and the world would take years to recover.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Apr 5, 2020 4:28:49 AM | https://www.thehindu.com/business/markets/sensex-nifty-post-worst-ever-one-day-crash/article31143428.ece

Next Story