February 28th, 2020 is turning out to be a Black Friday for the stock market investors. Within minutes of opening of trading, Rs 4 lakh crore of investors’ wealth was lost as sensex lost 1100+ points.
Ast the time of writing, BSE Sensex was 38,597.01, down by 1148 points or 2.89%.
Why is this happening? Here are the highlights:
- The sudden drop in sensex and eroding of investors’ wealth has been primarily due to the coronavirus scare, which has gripped the entire world.
- The drop in sensex was triggered by drop in Dow Jones, which fell by 1191 points overnight.
- IT and Finance companies are losing maximum ground, as their shares are plunging at a fast rate. While Bajaj Finance, Tech Mahindra and Tata Steel were lost between 4% and 5% points, TCS, RIL, HDFC and Infosys shed 2.5% to 3.5% points.
- The fear gauge of sensex: India VIX index was up by 15%, which clearly showcases the fear and apprehensions among stock investors, directly linked with coronavirus.
- In the last 5 sessions, sensex has lost 1550 points, thereby making this week as one of the worst in the last few years
- Although Govt will announce the GDP numbers for December, there isnt much hope for the investors. A poll predicted 4.7% growth, which seems highly unlikely, under current situation. Last quarter, the growth was 4.5%
- The panic is not limited to the big companies: even BSE small and midcap indices fell by 2.5%
- Share market in Japan and China also tripped, shedding upto 3.5% points in last 24 hours
- While Bank of America has predicted a slowest growth forecast this year, since the global recession, ratings agency Moody’s has declared that there will be a global recession in the first half of 2020.
- Now, the fear is mounting over coronavirus, since new cases have reduced in China, but increasing elsewhere. Iran, Italy and South Korea are the countries where maximum new cases are being discovered now.
- More than 2800 people have died due to coronavirus, whereas 83,000 people have been infected, globally.
We will keep you updated, as more details come in.
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