Domestic markets on Monday stopped trading for 45 minutes after benchmark indices tumbled 10 per cent — the lower circuit breaker — as investors remain worried about the novel coronavirus outbreak.
A lockdown across 75 districts in India is likely to have triggered more panic among investors, resulting in panic selling across the board. Within the first hour of trade, BSE Sensex plunged 2,991 points or 10 per cent at 26,924.11 points while NSE Nifty plunged 842 points or 9.63 per cent to 7,903.
As soon as trading started on Monday, both benchmark equity indices fell rapidly as volatility remained high. Analysts expect the stock market to remain volatile for at least a month, provided the coronavirus outbreak is contained.
By around 9:40 am, Sensex had plunged over 2,700 points, while Nifty fell 746 points to 8,000. Moments later, Sensex hit the lower circuit breaker and trading was halted.
Markets, however, are expected to trade in red as many companies have announced a complete shutdown of some plants in the wake of the Covid-19 outbreak in India.
There could be further selloff observed during the day as no clear stimulus measure has been announced for industries yet. All eyes will be on likely meeting between Prime Minister Narendra Modi and industry leaders, following which the government could announce some stimulus measures to help tackle the crisis.
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