Bloodbath on D-Street: Sensex sinks over 1,300 points in afternoon session amid global selloff, Nifty tanks 391 points; over Rs 5 lakh cr investor wealth wiped off

Sensex sank 1,100.27 points, or 2.77 per cent, to 38,645.39, while the NSE Nifty cracked 329.50 points, or 2.83 per cent, to 11,303.80,

FP Staff February 28, 2020 10:09:15 IST
Bloodbath on D-Street: Sensex sinks over 1,300 points in afternoon session amid global selloff, Nifty tanks 391 points; over Rs 5 lakh cr investor wealth wiped off
  • Sensex sank 1,100.27 points, or 2.77 per cent, to 38,645.39, while the NSE Nifty cracked 329.50 points, or 2.83 per cent, to 11,303.80 in opening session

  • All Sensex components were trading in the red, led by losses in Tata Steel, Tech Mahindra, Infosys, Mahindra and Mahindra, Bajaj Finance, HCL Tech and Reliance Industries

  • The rupee depreciated 28 paise to 71.89 against the US dollar in morning session.

After the Sensex nosedived over 1,300 points in the afternoon session at the Bombay Stock Exchange on Friday, while the Nifty was down 391 points, slipping below 11,300-mark. The blood bath on Dalal Street is attributed to a massive selloff in global equities as rising coronavirus cases outside China stoked fears of a pandemic that could dent world growth.

The 30-share index plunged 1313.53 points, or 3.30 percent, to 38,432.13, while the NSE Nifty plummetted 391.25 points, or 3.36 percent, to 11,242.05. Since the morning, Sensex fell over 230 points slipping below 38,500-mark.

The market wiped off over Rs 5 lakh crore investor wealth in opening session mid a massive selloff in global equities as rising coronavirus cases outside China stoked fears of a pandemic that could dent world growth.

All the Sensex components were in the red. The biggest loser was Tech Mahindra at 6.89 percent followed by Tata Steel (6.83 percent), Infosys (5.41 percent), Bajaj Finance (5.15 percent) and HCL Tech (4 percent)

In the opening session, the 30-share index sank 1,100.27 points, or 2.77 per cent, to 38,645.39, while the NSE Nifty cracked 329.50 points, or 2.83 percent, to 11,303.80.

According to a poll conducted by Reuters, the annual gross domestic product growth likely rose to 4.7 percent in October-December from 4.5 percent in the previous quarter. US stocks plummeted on Thursday as fears about the effect of the coronavirus outbreak on economic growth flared even as US officials pledged that they were stepping up efforts to safeguard Americans from the virus’ spread.

All Sensex components were trading in the red, led by losses in Tata Steel, Tech Mahindra, Infosys, Mahindra and Mahindra, Bajaj Finance, HCL Tech and Reliance Industries.

Bloodbath on DStreet Sensex sinks over 1300 points in afternoon session amid global selloff Nifty tanks 391 points over Rs 5 lakh cr investor wealth wiped off

Representational image. Reuters.

In the previous session, the Sensex settled 143.30 points, or 0.36 percent, lower at 39,745.66, and the Nifty fell 45.20 points or 0.39 percent to end at 11,633.30.

According to analysts, till last week the market was of the view that coronavirus was going to have a minimum impact on the global economy as the situation in China was being contained. But the increase in the number of new cases is changing the view and investors are worried about an intense slowdown.

Further, incessant selling by foreign investors is also spooking domestic market participants, traders said.

On a net basis, foreign institutional investors sold equities worth Rs 3,127.36 crore on Thursday, data available with stock exchanges showed.

Rupee slips 33 paise to 71.94 in early trade

The Indian rupee opened on a weak note and declined by 33 paise against the US dollar in opening trade on Friday, tracking heavy selling in domestic equities and sustained foreign fund outflows.

Forex traders said market participants were cautious after the benchmark 30-share sensitive index, Sensex, plummeted 1,083.85 points to 38,661.81 in opening session amid global selloff.

At the interbank foreign exchange the rupee opened at 71.90 then lost further ground and touched a low of 71.94 against the American currency, registering a fall of 33 paise over its previous close.

The domestic unit had settled at 71.61 against the US dollar on Thursday.

Stock exchanges in Shanghai, Hong Kong, Seoul and Tokyo plunged up to 4 per cent in their morning sessions.

On Wall Street, the Dow Jones Industrial Average dropped 1,190.95 points, its largest one-day point drop in history, bringing its loss for the week to 3,225.77 points, or 11.1 percent.

The S&P 500 has now plunged 12 percent from the all-time high it set just a week ago.

World oil prices too tumbled by more than 4 percent overnight as traders fretted about the impact of spreading coronavirus on crude demand, particularly from key consumer China.

Brent crude oil futures fell another 2.47 percent to $50.45 per barrel early in the day.

The rupee depreciated 28 paise to 71.89 against the US dollar in the morning session.

 

--With inputs from agencies

Updated Date:

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