Markets continue to bleed as investors hit panic-button!

Coronavirus outbreak has hit the global markets severely with expected massive disruption in the global demand and supply balance. As the sell-off in markets continued today i.e. on March 12, 2020, Sensex tanked by more than 7.29 per cent or 2,601.47 points to the level of 33,095.93. It is one of the lowest levels that the index has reached in the past 24 months. For the first time since September 2017, Nifty 50 index breaches 9,700 with a fall of more than seven per cent or 761 points at 9,697.40 levels, the lowest in 32 months.

The current week has witnessed a massive bloodbath at global stock markets as huge amount of investors’ money was eroded within minutes. Market experts believe that various indices have now entered into bear market after falling by more than 20 per cent. After opening, all of Nifty 50 stocks continued to trade in red with RIL erasing its previous day’s gains to be down by 7.09. Most of the stocks are trading in a negative range of 2-17 per cent. More than 750 stocks were trading in negative on BSE. Subsequently, over 250 stocks on BSE were seen locking in at their respective lower circuit. Currently, nearly all of the sectoral indices seemed to be trading close to their 52-week lows with the mid-cap index down more than eight per cent, thus falling to the lowest in 39 months. India Volatility Index (VIX) is at its six-year high, trading above 36 per cent. Generally, a rise in VIX suggests a likely jump in market volatility over a period of next 30 days. Rupee opened 68 paise down at 74.32 against US dollar, which is its weakest since October 11, 2018.