Stock Market Crash continues amid Coronavirus fears: Following the global trend, bloodbath continued on Dalal street on ‘Friday – the 13th’ with both Sensex and Nifty hitting their 3-year lows. Sensex plunged by nearly 3000 points on March 13 to hit low of 29,687; while Nifty fell by nearly 950 points to 8,624.
Both the stock indices reacted sharply to global fears around COVID-19, falling by 10 percent to hit lower circuits, after which trading was halted for 45 minutes in line with the SEBI guidelines. In addition to this, Rupee also hit a fresh record low of Rs 74.48 against the US dollar following the market crash with quick sell-off in domestic equities.
Coronavirus impact on stock market
The stock markets took a deep plunge on March 11, 2020 after WHO declared COVID-19 virus as pandemic. The declaration triggered travel bans globally with the US President Donald Trump banning travel from European countries for 30 days and India suspending all tourist visas till April 15, 2020.
In India, Sensex and Nifty crashed by nearly 7 percent. While BSE Sensex fell by nearly 2500 points or by 6.5 per cent to 32,990, NSE Nifty dropped by around 700 points to intra-day low, below 9700 points. The stocks of aviation sector were the worst hit, as shares of industry majors including Spicejet and InterGlobe Aviation fell by almost 19 percent after the travel ban imposed by the central government.
The other major contributers to the fall in Sensex included Tata Steel, Adani Ports, Mahindra & Mahindra, HDFC Bank, Axis Bank, Reliance Industries and the State Bank of India.
According to Reuters, the Reserve Bank of India may attempt to rescue the slumping market by pushing more liquidity and easing repayment issues to the sectors that have been affected the most by the breaking of supply chains.
Currently, around 126,490 confirmed cases of COVID-19 virus have been reported from across the world. This figure includes 4.637 deaths and around 68, 315 recoveries. India currently has 73 confirmed coronavirus cases, out of which 11 are fresh cases and four patients recovered successfully.