Indian markets suffer worst day in history
ECONOMIC STRESS The NSE Nifty 50 index sank 12.98% to a near four-year closing low, while the S&P BSE Sensex fell 13.15% to 25,981.24
BENGALURU: The Indian stock market on Monday suffered its worst single-day rout in history and the rupee plunged more than 1%, with investors stuck in a selling frenzy as the coronavirus disrupted businesses and forced several districts into lockdown.
The blue-chip NSE Nifty 50 index sank 12.98% to a near fouryear closing low of 7,610.25, while the S&P BSE Sensex fell 13.15% to 25,981.24.
Several Indian companies shut stores and factories in line with government directives and several districts went into lockdown to contain the virus. As of Monday 6 pm, India had recorded 415 cases of coronavirus, with eight deaths.
Trading in Indian equities was curbed in the first hour of Monday’s session as the main indexes plunged 10%, and resumed 45 minutes later.
Global financial markets were also hit hard on Monday as nations resorted to lockdowns, threatening to overwhelm policymakers’ frantic efforts to cushion what is likely to be a deep global recession.
In Mumbai’s main stock indexes on Monday, financial stocks bore the brunt of the losses. The Nifty PSU Bank Index, which tracks state-owned lenders, slumped 12.69%, while the Nifty Private Bank Index plunged 17.88% to a four-year closing low.
Meanwhile, gold fell as investors unloaded the precious metal in exchange for cash after several countries announced lockdowns to curtail the spread of the coronavirus, overshadowing efforts to cushion economic impact.
Spot gold was down 0.4% at $1,491.98 an ounce by 10:21 GMT, having risen nearly 2% in the previous session. US gold futures rose 0.9% to $1,497.60.