MUMBAI: The bloodbath on Dalal Street intensified on Thursday with benchmark indices entering into the bear market and logging their worst ever decline in absolute terms. Sensex and Nifty joined the global market rout following the US travel ban on European countries and World Health Organization (WHO) declaration of coronavirus as a pandemic. BSE’s 30-share Sensex nosedived a record 2,919 points or 8.18 per cent to close at 32,778, while NSE’s 50-share Nifty ended at 9,590, down 868 points or 8.30 per cent. It was the lowest close for Sensex since March 23, 2018 and for Nifty since June 30, 2017. Nifty declined most since October 24, 2008 in percentage terms. Earlier in the day, Sensex fell as much as 8.98 per cent or 3,204 points to 32,493, while Nifty declined 9.09 per cent or 950 points to 9,508. The carnage wiped off Rs 11.28 lakh crore in market capitalisation on the BSE. Volatility index, India VIX, witnessed a sharp surge of 30.43 per cent and headed towards the 42 mark, the highest level since 2009. On Wednesday, the United States said it will suspend all passenger travel from Europe, except the UK, on Friday for the next 30 days to stop the spread of coronavirus. However, Trump said trade will not be affected by the restrictions. Back home, as a precautionary measure, India suspended all visas, except for a few categories such as diplomatic and employment, till April 15 to prevent the spread of coronavirus as 10 new cases were reported, taking the total number of patients in the country to 60. Foreign institutional investors (FIIs) have continued selling Indian stocks. In March alone, they have withdrawn a net Rs 20,831 crore from domestic markets. Since February 24, FIIs have been net sellers every day, as per NSE data. Coronavirus impact on Indian market: Numbers say it all! Play Slideshow Deep In The red 12 Mar, 2020 (All figures are on YTD basis) Market at a glance The advance-decline ratio was highly skewed in favour of the bears, with 10 shares declining for every share that advanced on the BSE. A total of 1,180 stocks, including Reliance Industries and TCS tested 52-week lows on the BSE. The broader market was equally badly hit, with BSE 500 index dropping 8.32 per cent. BSE Midcap and BSE Smallcap indices shed 7.84 per cent and 8.72 per cent, respectively. All sectoral indices tanked at least 5 per cent. BSE Oil & Gas index was the worst performer, down 9.82 per cent. BPCL and ONGC were the top sectoral losers and tumbled 14.71 per cent and 12.63 per cent, respectively. BSE Realty followed next; it tumbled 9.50 per cent. Prestige Estates and DLF dropped 20 per cent and 12 per cent, respectively. The banking index fell around 10%, the biggest daily decline since October 2008. All the Sensex stocks were deep in the red, with financials and oil-to-telecom conglomerate Reliance Industries (RIL) contributing the most to the losses. Top lender State Bank of India was the biggest Sensex loser and dropped 13.23 per cent. HDFC Bank and HDFC slumped 8.18 per cent and 7.88 per cent respectively. RIL dropped nearly 8 per cent. Airline stocks were the worst hit. SpiceJet and Interglobe Aviation nosedived nearly 20 per cent and 11.43 per cent, respectively. Tata Power and Lakshmi Vilas Bank bucked the trend and rose 6.72 per cent and 4.88 per cent, respectively. Analysts’ views “The market direction will continue to be dictated by Coronavirus update as World Health Organisation (WHO) has declared the virus as a ‘pandemic’ creating panic amongst investors. Further, crude oil price and currency movement will be on investors’ radar. Hence, we expect volatility to remain high in the markets given uncertainty across the globe.” - Ajit Mishra, VP - Research, Religare Broking “We do not know how this virus is going to turn out in the future. We are at the very beginning of what this could be in India and there is no way for us to predict or have a call on its magnitude. We advise caution to our clients and we hope that they continue to bear down the amount of leverage in the market and remain cautious.” - Nikhil Kamath, Co-Founder & CIO, Zerodha. “Some good businesses have become cheap enough for us to buy. We believe they will make a comeback much faster. We remain focussed on price. Will go and buy the business if it is rightly priced. invest in a cautious manner, don’t go all in. One needs to keep some ammunition on the side as the market will keep giving opportunities. Buying in the scrips will be back when the prices recover.” - Ridham Desai, Managing Director, Morgan Stanley India "It is best for investors to stay away from this market for a while till the time the volatility settles and we can see some notable reversals. It is natural to be induced towards averaging your portfolios or buying fresh stocks, however we are advising our clients against this and wait for the tide to settle before re-entering the markets, which will be a really good time to start investing for the long term." - Amit Gupta, CO-Founder and CEO, TradingBells Global markets Financial markets reeled on Thursday as stocks dived and oil slumped after US President Donald Trump took the dramatic step of banning travel from Europe to stem the spread of coronavirus, threatening more disruptions to trade and the world economy, Reuters reported. Euro Stoxx 50 futures plunged 8.3 per cent to their lowest levels since mid-2016. They were last down 6.9 per cent while investors rushed to safe-haven assets from bonds to gold to the yen and the Swiss franc. U.S. S&P 500 futures plummeted as much as 4.9 per cent in Asia and last traded down 3.6 per cent, a day after the S&P 500 lost 4.89 per cent, leaving the index on the brink of entering bear market territory. MSCI’s broadest gauge of world shares, could follow suit, having fallen 19.2 per cent so far from its record peak hit only a month ago.
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