Indian equities trim losses, but languish at multi- year lows Oil rebounds after three-day slump, challenges remain
BEAR TRADE Equities have crashed over 26% so far in March due to virus impact
BENGALURU: Indian stocks closed lower for a fourth straight day on Thursday as a sharp late-afternoon surge failed to reverse deep losses from earlier in the session.
The Nifty settled down 2.42% at 8,263.45, while the Sensex closed 2.01% lower at 28,288. Both indexes closed at levels last seen in 2017.
The indexes tumbled as much 7.5% earlier in the session, as measures unleashed by major governments and central banks failed to reassure investors worried over a global recession fueled by the rapidly spreading coronavirus outbreak.
Indian equities have crashed more than 26% so far in March as the virus, which originated in China, has claimed thousands of lives, forced authorities to lock down cities and hammered economic activity.
In India, several states have closed malls, schools, pubs and government offices in a bid to stop the spread of the virus. As of Thursday, there were 169 cases reported in India with four deaths.
Shares of Bharti Infratel Ltd and Coal India were the top losers on the Nifty index, slipping 17.2% and 14.8%, respectively.
The Nifty Auto index closed 6.09% lower, recouping from an 8.6% tumble earlier.
The Nifty bank index rebounded from an over 9% plunge to finish the session 2.4% lower, while the Nifty PSU Bank index closed 2.8% down after falling as much as 6.6%.
Shares of ITC Ltd ended 7.4% higher, while Bharti Airtel rose 4.5%, among the handful of gainers.
LONDON: Oil prices bounced nearly 7% on Thursday after a three-day selloff drove them to their lowest in almost two decades as demand plummeted due to the coronavirus and supplies surged in a fight for market share between Russia and Saudi Arabia.
Benchmark Brent, which has lost half its value in less than two weeks, got some respite as investors across financial markets assessed the impact of massive central bank stimulus measures.
Brent crude jumped $1.43, or 5.75%, to $26.33 a barrel by 10:45 GMT, after plunging to $24.52 on Wednesday, its lowest level since 2003. US crude gained $2.40, or 11.8%, to $22.77 after dropping nearly 25% in the previous session to an 18-year low.
But analysts said gains were likely to be temporary, as tumbling demand was compounded by the collapse this month of a deal on supply curbs between OPEC and other producers.
The drop in demand, particularly in transportation, is also leading to a rapidly growing glut in refined products such as jet fuel and gasoline.
Meanwhile, Saudi Arabia announced its decision to trim this year’s budget by around 5% in its first austerity measure as the economy reels from the fastspreading coronavirus and crashing oil prices. Finance Minister Mohammed al-jadaan said that the cuts would have “the least social, economic impact”.