Sensex Crashes 2,100 Points due to coronavirus pandemic

Sensex Crashes 2,100 Points due to coronavirus pandemic :- Due to the panic selling amid the coronavirus pandemic, the domestic market plunged once again during the early trade on Monday with the benchmark equity indices BSE Sensex and NSE Nifty tanked over 6 percent. According to the report, the 30-share Sensex traded 2,182 points or 6.40 percent down at 31,921, while the 50-share Nifty slipped 616 points or 6.20 percent to 9,339 at around 9.35 am today.

Sensex Crashes 2,100 Points due to coronavirus pandemic

Monday’s crash has wiped out over Rs 6 lakh crore of equity investors’ wealth within the first 15 minutes of trading. It is being advised by the economic experts that it is best for the investors to stay away from this market for a while till the time the volatility settles and we can see some notable reversals when there will be a drop in the new cases of virus-infected people.

With the rising cases in India, the volatility index is also going high and thus giving the indication that there is no relief for the market as all sectoral Nifty is in negative with the baking sector being at the worst affected.

However, the crisis-ridden Yes bank’s shares surged by around 40 percent which brings a piece of good news for the investors of the bank. While the losing banks during the morning trade include HDFC, ICICI, SBI, Sun Pharma, JSPL, DLF, and Max Financial.

Market sentiment in India further deteriorated after the number of novel coronavirus cases in the country rose to 110 on Sunday, with Maharashtra reporting the highest followed by Kerala. Over 450 stranded Indians were flown back from Italy and Iran, the two worst-affected countries after China, and quarantined.

More than 1.5 lakh people have been infected globally while 6,500 people have died so far and thus the market volatility also remains high as investors continue to panic even after the announcement of a host of global measures to cushion against the virus outbreak.

Another cause for this downfall is that the market participants are also concerned as foreign portfolio investors (FPIs) have withdrawn over Rs 35,000 crore on a net basis from the domestic markets in March so far amid the coronavirus pandemic triggering fears of a global recession.

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