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Coronavirus spread pins down markets

The BSE gauge Sensex settled the day with a loss of 392.24 points, or 0.97%, at 39888.96

By TT Bureau in Mumbai

  • Published 27.02.20, 1:22 AM
  • Updated 27.02.20, 1:22 AM
A woman walk past an electronic board displaying share prices in Tokyo on Wednesday.
A woman walk past an electronic board displaying share prices in Tokyo on Wednesday. (AP)

Domestic equities remained in a free fall for the fourth session in a row on Wednesday following a sustained global selloff as the number of coronavirus cases surged in new regions, putting the world economy at a bigger risk.

The BSE gauge Sensex settled the day with a loss of 392.24 points, or 0.97 per cent, at 39888.96 — the lowest closing in over three weeks.

Starting off on a weaker note, the index plunged over 521 points during the day.

Over the past four sessions, the Sensex has lost 1,281.16 points, or 3.11 per cent.

The broader NSE Nifty plummeted 119.40 points, or 1.01 per cent, to end at 11678.50 — its worst level since February 3. The NSE index has shed 402.35 points, or 3.33 per cent, in the last four days.

On the Sensex chart, Sun Pharma was the top loser, followed by Maruti, L&T, Hero Motocorp, Infosys, ONGC and RIL. On the other hand, SBI, HUL, HCL Tech, Asian Paints, and UltraTech Cement ended with gains.

Sectorally, BSE realty, auto and capital goods were among the top losers, dropping as much as 2.16 per cent. Barring telecom, all sectoral indices closed in the red.

In the broader market, BSE midcap and smallcap indices fell up to 1.34 per cent.

“Increasing concern regarding coronavirus in the world over is impacting the global market. The economic impact is expected to be worse than thought earlier, forcing investors to stay away from risky assets,” Vinod Nair, head of research at Geojit Financial Services, said.

Further, analysts said, the domestic market was bracing for yet another subdued GDP growth, with a forecast of 4.6-4.7 per cent in the third quarter compared with 4.5 per cent in the second quarter.

With the spread of the virus in France, Iran, South Korea and Italy, market participants are growing increasingly fearful about the impact on the global economy. Bourses in Shanghai, Tokyo, Seoul and Hong Kong settled with significant losses. Stock exchanges in Europe were trading on a negative note in their morning sessions.

Equities on Wall Street plunged in overnight trade after American health authorities said they ultimately expect the coronavirus to spread to the US.

On the currency front, the rupee appreciated 19 paise to 71.66 per dollar.

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