- Trading was halted for 45 minutes after Sensex and Nifty hit its 10% lower circuit within few minutes of opening.
- Sensex plunged over 2,440 points or down by 8.15%, and Nifty was down by 7.9%
- Singapore Nifty plunged over 1,000 points during the morning trade.
This meltdown was much expected after the Indian government imposed lockdown in 75 districts to control the fast-spreading Coronavirus (COVID-19).
“The spread of Coronavirus, its impact on the global economy and the response of various nations to deal with it will also be closely watched,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
However, the Nifty’s downfall wasn’t unprecedented after the Singapore exchange SGX Nifty plunged over 1,000 points during the morning trade, indicating that the Nifty index will open in the red.
Experts however hope for a likely stimulus similar to the ones given by the Trump administration in the US and European nations. They also expect volatility curbing measures to be announced by the regulator SEBI to arrest a major downward spiral.
On Friday, SEBI revealed the measures to contain massive volatility that has plagued the stock markets. These include limits on positions that can be taken up by investors in the F&0 segment, to keep bears from taking over the market.
Furthermore, the regulator set certain conditions under which mutual funds or foreign investors can place bets on the index futures.
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