The Indian stock markets plunged into bear territory on Thursday caused by coronavirus outbreak. Also, the U.S. suspended travel from Europe. It impacted further disruption to the global economy.
According to Reuters, the NSE Nifty 50 index plunged 8.3% to 9,590.15, its lowest close in 2-1/2 years, while the S&P BSE Sensex also slid about 8% to a near two-year low of 32,778.14.
Oil-to-retail conglomerate Reliance Industries Ltd plunged 7.9% to its lowest close in more than 16 months.
Indian stock indexes last time dropped a crisis in 2008. It was at the height of the global financial crisis.
Large-cap energy and financial shares drove the selloff in Mumbai. The Nifty 50 and the Sensex have fallen over 20% from their most recent peak on January 20, confirming a bear territory.
This case is about the coronavirus outbreak. It heightened worries over the Indian economy. The recent collapse of a large private-sector lender adding to concerns over the country’s financial sector depicted the Indian economy.
A chief executive of Mumbai-based Rowan Capital Advisor, Yogesh Nagaonkar s said that “India entered 2020 with a massive demand problem, and that has been worsened now. This is a wash-out year for markets”.
The coronavirus outbreak affected the rupee. It was weaker by 0.6% at 74.19 against the dollar, while the benchmark 10-year bond yield ticked up to 6.21%.
The World Health Organization described the new coronavirus as a pandemic for the first time on Wednesday. Italy and Iran were now on the frontline of the disease and other countries would soon join them. To protect the citizens, India on Wednesday suspended a vast majority of visas to the country to contain the virus.
