Equity benchmark indices continued to suffer losses as they further tanked in the afternoon session on Monday in line with the fall in global markets as risk sentiment soured due to the unabated spread of the coronavirus outbreak and a plunge in oil prices.
— CNBC-TV18 (@CNBCTV18Live) March 9, 2020
Sensex plummeted over 2,200 points to below 35,000-mark while the broader Nifty dived over 600 points to below 10,500 level in the afternoon trade.
Global oil benchmark Brent crude futures plunged nearly 30 percent to $32.11 per barrel after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets.
Continuing its downward spiral, the 30-share index was plunged 2266.79 points, or 6.03 percent, to 35,309.83. The NSE Nifty too cracked 632.20 points, or 5.72 percent, to 10,357.25 at around 1.15 PM.
All the Sensex pack was in the red. ONGC was the top laggard in the Sensex pack, nosediving nearly 15 percent. The other major losers were RIL (13 percent) IndusInd Bank (8.51 percent), TCS (7.88 percent), ICICI Bank (7.51 percent), Tata Steel (7.22 percent), L&T (6.9 percent) and SBI (6.25 percent).
In the previous session, the 30-share BSE barometer settled 893.99 points or 2.32 percent lower at 37,576.62. Likewise, the Nifty tanked 279.55 points or 2.48 percent to close at 10,989.45.
All sectoral indices at the National Stock Exchange were in the red with Nifty metal down by 5.2 percent, PSU bank by 4.3 percent, IT by 3.7 percent and realty by 3.3 percent.
Among stocks, ONGC cracked by 11.41 percent to Rs 78.40 per share. Metal and mining major Vedanta fell by 9 percent while index heavyweight Reliance Industries dipped by 6.2 percent at Rs 1,191.50 per share.
Among the other major losers were IndusInd Bank, State Bank of India, Tata Motors, Tata Steel, L&T and Power Grid Corporation.
However, Yes Bank gained by 14.2 percent as State Bank of India got ready to unveil a reconstruction plan for the troubled private sector lender, which has been grappling with mounting bad loans and struggling to raise fresh capital. Bharat Petroleum Corporation gained by 5.5 percent while IndianOil Corporation rose by 2.1 percent.
On a net basis, foreign institutional investors sold equities worth Rs 3,594.84 crore, while domestic institutional investors bought shares worth Rs 2,543.78 crore on Friday, data available with stock exchanges showed.
According to traders, investor sentiment took fresh beating as oil prices plunged nearly 30 percent, adding to the heightened volatility in global markets amid concerns over the rapidly-spreading coronavirus.
Incessant foreign fund outflow also spooked market participants, traders said.
Rupee slips below 74 level against dollar in early trade
The Indian rupee continued its downward journey on Monday, sliding another 16 paise to 74.03 against the US dollar in opening trade, tracking weak opening in domestic equities amid mounting fears of a coronavirus-led economic slowdown.
Forex traders said weak opening in domestic equities and foreign fund outflows dragged the local unit.
Though weakening of the American currency in the overseas market and easing crude oil prices supported the rupee, but traders believe there is mounting fears of recession in major economies due to the coronavirus outbreak and this could weigh on the local unit.
The rupee opened weak at 73.99 at the interbank forex market and then fell further to 74.03, down 16 paise over its last close.
World shares trampled in coronavirus panic
Global share markets tumbled on Monday as panicked investors fled to bonds to hedge the economic shock of the coronavirus, and oil plunged more than 30 percent after Saudi Arabia slashed its official selling price.
Investors drove 30-year US bond yields beneath 1 percent as they wagered the Federal Reserve would be forced to cut interest rates by at least 75 basis points at its March 18 meeting, despite only just having delivered an emergency easing.
The safe-haven yen surged across the board as emerging market currencies with exposure to oil, including the Russian rouble and Mexican peso, tumbled.
Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of Organisation of the Petroleum Exporting Countries' (OPEC) supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that sent prices down by about two thirds.
Brent crude futures slid $11.14 to $34.13 a barrel in chaotic trade, while U.S. crude shed $10.58 to $30.70.
“Today’s price action puts at risk the fiscal health of the vast majority of sovereign producers and budget cuts and increased debt loads are now looming in the event of a prolonged period of low prices,” warned Helima Croft, head of global commodity strategy at RBC Capital Markets.
Bourses in Shanghai dropped over 2.41 percent, Hong Kong 3.53 percent, Seoul 3.89 percent and Tokyo cracked up to 5.65 percent.
Back home, the Yes Bank crisis has raise concerns over the stability of the country's banking system, adding to the woes of domestic investors, traders said.
— With inputs from agencies
Updated Date: Mar 09, 2020 13:25:48 IST