Sensex crashes 2,300 points; records biggest single-day fall in decadeLast updated on Mar 09, 2020, 03:42 pm
Market indices Sensex and Nifty crashed on Monday trading 6% lower in the biggest single-day fall in at least a decade.
The development comes as global markets plunge amid the ever-growing concerns of an ongoing outbreak of the novel coronavirus disease, COVID-19.
Incidentally, oil prices also plunged 30% after Saudi Arabia slashed prices, starting a price war.
Here are more details.
Sensex down 6.16%; Nifty trades 5.9% lower
At 1:20 pm on Monday, the BSE Sensex traded 2,314.86 points lower at 35,261.76, recording a fall of 6.16%.
Meanwhile, the broader NSE Nifty benchmark plunged to 10,340.70, recording a fall of 648.75 points or 5.90%.
All 11 sectoral indices traded sharply lower, with Nifty down 6.24% at one point.
Reliance Industries share price dropped 11%—its worst single-day fall in at least a decade.
Reliance Industries, ICICI Bank, HDFC Bank dragged BSE Sensex
In the Sensex basket, Reliance Industries, HDFC Bank, ICICI Bank, and HDFC were major laggards, accounting for losses of over 1,100 points. Reliance Industries alone accounted for a loss of nearly 500 points.
For Nifty, ONGC, Reliance Industries, Vedanta, Zee Entertainment, IndusInd Bank and TCS were the biggest losers—recording losses ranging from 7.95-14.07%. Yes Bank and Bharat Petroleum notably gained 29.72% and 7.33% respectively.
Like domestic markets, global markets also plummeted
Across Asia, equity markets plummeted with MSCI's broadest index of Asia-Pacific shares outside Japan dropping 3% to a five-month low.
Japan's Nikkei fell 4.7% while Australia's commodity-heavy market was down by 5%.
France's CAC, Germany's DAX and Britain's FTSE futures opened 4-8% lower.
Separately, the United States market futures also recorded losses, with Wall Street E-Mini futures falling 4.6%.
How does coronavirus outbreak impact markets globally?
The main reason for the tumbling global stocks is the coronavirus outbreak, which has spread to 100 countries around the world.
The disease has sickened over a lakh across the globe and claimed 3,840 lives, thus greatly impacting economies.
Analysts say that the disease has caused global panic among investors, who fear that the outbreak will tip the world economy into a recession.
Other factors contributing to crisis on Dalal Street:
Saudi Arabia launched an oil price war even as global demand has taken a hit amid the coronavirus outbreak. Saudis reportedly also plan on flooding the markets with its supply.
Analysts said that the Yes Bank crisis raised concerns about the stability of India's banking system.
Analysts also said that non-stop selling by the foreign institutional investors contributed to the crashing of domestic markets.