After US Dow, Nifty likely to enter bear market!

Global markets are reeling under an intense selling pressure as WHO declares Coronavirus outbreak as pandemic and US President Donald Trump said that US will suspend all travel from Europe to US for 30 days and this will come into effect on Friday midnight. The global weakness is sure to spill to Indian shores and SGX Nifty is presenting a scary picture for domestic markets as it trades with a mammoth loss of 410 points and indicates Nifty to open below 10,000-mark. Apart from Coronavirus updates, the market participants will be all ears to key macro number slated to be released later in the day.  The level of 10,000 holds the key and if Nifty closes below that level, then we could officially be in bear territory.  

Asian markets is in a sea of red on Thursday as brutal sell-off overnight on Wall Street led Dow to ‘bear market’ as WHO declares Coronavirus, a global pandemic. Japan’s Nikkei 225 is down by a staggering 5.17 per cent followed by Hong Kong’s Hang Seng, which has plunged 3.33 per cent and China’s Shanghai Composite which is down by 1.71 per cent.

Back home, the markets opened gap down but soon recovered from lower levels and thereafter, it turned volatile and ended the day with modest gains. BSE Sensex closed up 0.18 per cent and Nifty gained 0.07 per cent, respectively. The broader markets ended in red with Nifty Mid-cap and Small-cap dipping 0.97 and 0.37 per cent, respectively. Talking about the sectoral indices, Nifty Media, Nifty Private Bank and Nifty Financial Services ended as the top gainers while, on the flipside, Nifty PSU Bank, Nifty Realty and Nifty Metal were the top losers.

In overnight development, the scene on Wall Street was not less than a scary nightmare as all three major stock market indices plummeted at least five per cent on Wednesday but Dow led the fall post news that World Health Organisation (WHO) has labelled Coronavirus outbreak as a global pandemic. European indices too tumbled with German Chancellor Angela Merkel admitting that the situation is out of control while adding that Coronavirus is likely to infect up to 70 per cent of the population of Europe’s largest economy.