Coronavirus Triggers Worst Day For Stock Market; Investors Lose Rs 11.2 Lakh Crore As Sensex Sheds 2919 Points
Sensex has recorded the biggest ever fall in a single day, after a huge gap of two decades, causing mayhem on the Dalal Street. The Sensex declined by 2,919 points to 32,778, and all this has happened due to the WHO’s declaration of Coronavirus as a global pandemic.
Find out all the details about the story right here!
Sensex, Nifty Posts Biggest One-Day Fall After Twenty Decades
Indian stock markets were hit by a big selloff with Sensex, the benchmark, plunged its worst today in twenty years. This happened no sooner than the World Health Organization declared that the coronavirus is a global pandemic. The market fell by 2919 points to 32,778, and robbed about Rs. 22.26 lakh crore of investor wealth in a single day.
Along with the Sensex, the Nifty took a plunge as well by 8% down to 9633. Amit Gupta, co-founder and CEO of TradingBells said that the Indian market witnessed one of the worst single-day falls in recent history.
He said, “The major reasons for this crash is the coronavirus scare with no confirmed news on how many could get affected due to the virus and no cure or vaccine available as yet. In the short run, margin calls and stop losses are triggering panic selling in the market which is creating a cyclical effect as this is further pushing the stock prices downwards.”
He also expressed that it would be best investors to stay away from the market until the situation gets better and there are some evident reversals.
Nifty Bank Sunk By 8%; INR Went Down Too
As per reports, the India VIX index, which is also known as the fear index went up by 30% to 41.32, which showed the investors’ nervousness. In addition to that, the BSE midcap and smallcap index also went down by about 7.5% and 8.5% respectively.
Ranking first in the slump were banking stocks, with the Nifty Bank index slouching by 8%. Even the big names, ICICI Bank, HDFC Bank, Axis Bank and SBI fell between 7% and 12%.
Additionally, the Indian Rupee also fell by a huge amount, the largest fall it ever took. It fell down to as much as 74.34 per dollar, which is huge compared to 74.48, a level hit in October 2018.
We’ll keep you informed as more updates come in!