SENSEX FALLS 674 PTS; NIFTY BELOW 8,100
The Sensex tumbled 674 points on Friday, weighed down by losses in banking stocks. After hitting a low of 27,500.79 during the day, it ended 2.39 per cent lower at 27,590.95. The Nifty50 shed 170 points, or 2.06 per cent, to finish at 8,083.80.
The Indian markets declined more than 2 per cent on Friday as investors continued to fret over the corporate and economic impact of the Covid-19 pandemic, which has now infected more than a million people globally. Investors were left disappointed after Prime Minister Narendra Modi in his video message refrained from offering any measure to help repair the economy.
The Sensex closed at 27,591, down 674 points, or 2.4 per cent. The Nifty fell 170 points, or 2.06 per cent, to end at 8,084. The Nifty index fell 6.7 per cent during the week, while the Sensex fell 7.5 per cent. Both indices have declined in three of the last four weeks. Market experts said investors were hoping that the PM would announce concrete steps to contain the spread of Covid-19 or any update on whether the 21-day lockdown would be extended. While the government and the Reserve Bank of India (RBI) have provided relief packages, experts say more needs to be done as the shock because of the sudden stoppage of economic activities is huge. The United Nations Department of Economic and Social Affairs this week said global economic growth could shrink to 1 per cent, reversing its earlier forecast of 2.5 per cent growth. The agency said growth could contract further if restrictions on economic activities are extended without further stimulus.
“The bigger concern is the economic fallout of the Covid-19 pandemic. We were under the impression that things will be back to normal once the lockdown is over, but it now seems there will be a lot of restrictions even after the lockdown is lifted and this is adding to the panic,” said G Chokkalingam, founder, Equinomics.
Oil prices fluctuated after soaring 22 per cent on Thursday. Analysts said investors were sceptical of the Saudi Arabia-russia deal to cut oil production. Also, fresh restrictions announced in Singapore weighed on sentiment.
“Lack of clarity regarding talks between Russia and Saudi Arabia affected sentiment. The news that there will be tighter measures imposed in Singapore for a month added to the nervousness, as a lot of foreign investors are based there,” said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services. Barring six, all the sectoral indices of the BSE ended the sessions with losses. Banking and finance stocks fell the most, with their gauges falling 5.4 per cent and 4.4 per cent, respectively. On the other hand, shares of pharmaceutical companies surged, with the BSE Healthcare index, gaining nearly 4 per cent.