A deep selloff across sectors – led by banking, auto and metal stocks – hurt the markets
Trading in the domestic stock markets was halted for 45 minutes on Monday morning as benchmark indices plunged 10 per cent to trigger the lower circuit. after India entered a lockdown joining several countries in their fight against the deadly coronavirus (COVID-19) outbreak. The S&P BSE Sensex index froze at 27,608.80 – down 2,307.16 points from the previous close – and the broader NSE Nifty 50 benchmark was stuck down 842.45 points at 7,903.00. A deep selloff across sectors – led by banking, auto and metal stocks – hurt the markets, as the rapid spread of the coronavirus outbreak forced more countries to declare lockdowns, hurting businesses.
Here are 10 things to know about the big selloff in the markets:
Monday’s trading halt was a second within a period of seven trading sessions, as world markets continued to suffer the worst selloff since the 2008-09 global financial crisis.
Trading will resume at 10:58 am, with a pre-opening session at 10:43 am. Imposed by market regulators, circuit breakers are aimed at protecting investors against abysmal falls. (Also Read: Recovery Will Take A Long Time, Say Analysts)
Investors continued to panic over the impact of the fast-spreading coronavirus outbreak on global growth, say analysts.
Several states in India will remain under a lockdown till March 31, as the country has registered 341 cases of coronavirus, with seven deaths as of Sunday.
Analysts are expecting more correction as investors worldover assess the effectiveness of policy measures to curb the spread of the coronavirus outbreak amid fear that the global economy may enter recession.
Asian stock markets sank as a rising tide of national lockdowns threatened to overwhelm policymakers’ frantic efforts to cushion what is likely to be a deep global recession.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 3.8 per cent, with New Zealand’s market shedding a record 10 per cent as the government closed all non-essential businesses.
Shanghai blue chips dropped 2.3 per cent, though Japan’s Nikkei rose 0.8 per cent aided perhaps by expectations of more aggressive asset buying by the Bank of Japan.
In a foretaste of the pain to come, E-Mini futures for the S&P 500 dived 5 per cent at the open to be limit down, while EUROSTOXXX 50 futures tumbled 6.4 per cent.
The rapidly spreading virus has claimed more than 14,000 lives globally with more than 300,000 infections, disrupting business and ravaging markets worldwide..
