Bloodbath on Dalal St: Sensex down 1.9K pts

VIRUS ALARM Covid-19 spread and big crude oil plunge trigger global slide YES RIPPLES Uncertainty over fallout of crisis at bank further spooks markets

NEWDELHI: The Indian stock market was hazardously poised, halfway between a correction and a bear market at close on Monday, with many market operators relieved that Tuesday is a market holiday on account of Holi.

Both benchmark indices, BSE’s Sensex, and the National Stock Exchange’s broader Nifty, lost the most since August 2015 on account of the second-biggest fall in crude prices – Brent crude fell 31.5% , the most since Desert Storm (January 17, 1991, when oil fell almost 35%) – but also fears over the coronavirus and lingering (and growing) concerns over the fallout of the crisis at Yes Bank Ltd. Not surprisingly, the Nifty Bank Index, a sectoral index of banks, was already in correction mode, having lost at least 20% over peaklevels.

The indices are now at their lowest since February 19, 2019.

Similar mayhem played out in key stock markets across the world. Trading was halted at New York’s Dow when the S&P 500 index plummeted 7%, triggering an automatic 15-minute halt. When trading resumed, the index was trading about 5.5% lower. Britain’s FTSE and Germany’s DAX were trading at levels nearly 7% lower, while key Asian indices — Japan’s Nikkei and Hong Kong’s Hang Seng Index — were slightly better off at -5.07% and -4.23%respectively.

On Monday, the Sensex lost 5.17% and the Nifty, 4.9%, after plunging to 6.57% and 6.32% respectively over their previous close during the day’s trades.

All told, investors lost ₹7 lakh crore (as measured by a fall in BSE’s market capitalisation). Reliance Industries Ltd, diversified but a big player in the oil market, lost 13.10% from its previous close, to end the day at ₹1104.50.