Sensex tanks 1,448 pts amid global market rout

NEW DELHI: Indian stocks plummeted to record their worst week since the 2008 financial crisis as more indications poured in that the coronavirus outbreak could turn into a pandemic, threatening to spread contagion across the world economy, roiling global trade and leaving few industries and countries unscathed.

The NSE Nifty 50 index ended 3.71% lower at 11,219.20, and the benchmark S&P BSE Sensex fell 3.4% to close at 38,383.32 on Friday — the sixth consecutive session of losses — as analysts also predicted lower earnings for companies in the March quarter.

For the week, the Nifty 50 index shed 7.3%, while the Sensex dropped 6.8%. The fall was in line with global stock markets. American, European and key Asian markets fell sharply on Thursday and Friday — with some of the worst losses seen in metal stocks. Cumulatively, Reuters reported, a value of $5 trillion was wiped out from the rout reported overnight in American stocks and across Asian and European equities on Friday. All told, investors in Indian markets have lost

~10.67 lakh crore (trillion) since the beginning of the week. On Friday alone, they lost over ~5 lakh crore. On Thursday, the S&P500 fell 4.43%, the Dow Industrial Average 4.42%, and the Nasdaq Composite 4.61%. Germany’s DAX skidded as much as 5% before stabilising. On Friday, Tokyo and Shanghai closed 3.7% lower, while the S&P, Dow and Nasdaq opened up to 2% lower.

Not too long ago, investors were growing confident the disease, which emerged in China in December, might be under control, but outbreaks in Italy, South Korea, Japan and Iran have fuelled fears the virus is turning into a global threat.