Sensex tanks by more than 7 per cent; Nifty follows in pursuit

The key benchmark index-Sensex crashed by 2,713.41 points, close to the level of 31,390.07, down by 7.96 per cent on Monday. Nifty 50 also fell by 7.6 per cent, which is 756.10 point to the level of 9,199.10. The continued panic selling was driven by the deepening fear of Coronavirus pandemic.

Globally, the markets took a major hit as US Federal Reserve slashed its key interest rate back to near zero along with restarting bond buying so as to ensure economic growth and liquidity in dollar lending. This created a fear in investors since 100 points rate cut by US Federal reserve is thought to depict the severity of the virus’ impact on the economy rather than cheering investors. Thus, other global indices such as Shanghai index was down by 3.40 per cent, FTSE 100 opened lower by more than six per cent and CAC 40 was trading down by more than nine per cent, post opening.

Sensex today opened at its day’s high of 33,103.24 level and reached its lowest for the day of 31,276.30. The markets for today factored in any credit pressure that may be created as the virus spreads thereby, hitting businesses hard. With a rise in FII outflows, combined with inflation and global recession fears loomed the markets. RBL Bank and IndusInd Bank fell by 21.25 per cent and 17.50 per cent, respectively thus, dragging down the index. BSE Metal tumbled by 9.3 per cent whereas; BSE Bank registered a fall of 8.36 per cent. Sensex gaining stocks include-YES Bank, which gained by 45.21 per cent and India Cements, up by 9.97. Nifty 50 witnessed declines in 49 of its constituents with the stock of YES Bank being the only stock advancing in the trading session.

BSE Mid-cap was down by 5.94 per cent and BSE Small-cap was also down by 5.96 per cent.