Indian equities plunge 20% in less than 45 days on coronavirus concerns; fall in domestic indices lower than other countries

New Delhi: Indian stocks have slumped nearly 20 percent in less than 45 days as concerns over coronavirus pandemic dampened investor sentiments worldwide, including in major European markets and the US. Data compiled by Securities and Exchange Board of India (SEBI) showed that China’s Shanghai Composite declined just 1.78 percent while the decline in other key Asian markets was in the range of 7-15 percent. The figures are based on comparison between closing levels on 31 January and 12 March – the period during which coronavirus infections became more pronounced across geographies, including India. [caption id=“attachment_4472957” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] Over the last few days, the Indian stock market has been moving in tandem with other global markets owing to concerns relating to coronavirus pandemic, resultant fear of economic slowdown and fall in international crude prices. However, SEBI said that fall in the Indian indices has been significantly lower than the stock market in other countries. Indian equity benchmark Sensex plunged by 19.51 percent and the broader Nifty sank 19.83 percent, much lower than France’s CAC, which plummeted 36.35 percent, Russia’s RTS (36.3 percent), Brazil’s Bovespa (36.2 percent) and Germany’s DAX (29.43 percent). Further, the FTSE 100 index of the UK dived by over 28 percent, US’ Dow Jones declined 25 percent and Nasdaq over 21 percent. Interestingly, drop in Asian markets has been lower than European and the US. Chinese market has slipped just 1.78 percent even as epicentre of the outbreak was the central Chinese city of Wuhan. Among other Asian markets, Hong Kong’s Hang Seng tumbled 7.61 percent, Taiwan’s Taiex (9.33 percent), South Korea’s Kospi (13.43 percent) and Singapore’s Strait Times (15.06 percent). Meanwhile, the SEBI also said that the regulator and stock exchanges are prepared to “take any action” as required to deal with market volatility, hours after trading was halted for 45 minutes. On Friday, the Sensex plummeted over 3,200 points and the Nifty sank 966 points and hit their lower circuit limits, in opening session. Following this, stock exchanges halted trading for 45 minutes. Later, the broader market recovered from the day’s low and the BSE Sensex and the NSE Nifty were trading 2 percent higher. On Thursday, the broader markets fell by more than 8 percent.