Mumbai: Indian stocks slumped Monday to their lowest in nearly 17 months, tracking global markets, as panic over the economic fallout of the coronavirus outbreak intensified and oil prices plummeted by 30 per cent.
The NSE Nifty 50 index was down 6.08 per cent setting it on course for its worst day since 2009, while the BSE Sensex plunged 6.25 per cent (2,366.26 points) to 35,234.45. The Nifty hit its lowest since October 2018. Just three of the Nifty’s 50 components were trading higher. The country’s benchmark 10-year bond yield fell briefly below 6 per cent and was last at 6.0116 per cent.
“The bigger concern is the fast-spreading coronavirus outside China and its impact on economic growth,” said Siddharth Khemka, head of retail research at Motilal Oswal Securities. “FIIs have been selling relentlessly for the past two weeks,” Khemka added, referring to foreign institutional investors.
Global share markets tumbled and European futures fell 10%, while MSCI’s broadest index of Asia-Pacific shares outside Japan losing 3.7% in its worst day since 2015.
“The possibility of Nifty going below 10,000 cannot be ruled out. Some clarity on the coronavirus is required,” said Anita Gandhi, director at Arihant Capital Markets office here.
Monday’s rout comes after bruising two weeks during which India’s NSE Nifty 50 index has shed nine per cent on coronavirus fears and an ongoing turmoil at Yes Bank, one of the country’s largest lenders. The worst losers were ONGC, Reliance Industries, Vedanta, Zee Entertainment, IndusInd Bank and TCS – down between 7.95 per cent and 14.07 per cent. Surprisingly on the other hand Yes Bank and Bharat Petroleum managed gains of 29.72 per cent and 7.33 per cent respectively.
Shares of Reliance Industries Ltd fell as much as 13.68 per cent their worst percentage fall since October 2012 on the slump in crude prices.
Agencies