Nifty hits a new three-year low as Sensex drops another 1,800 points
- Sensex dropped another 1,800 points as markets opened today.
- Nifty is at 7,800 points and BSE opened below 27,000. A new three-year low for both.
- All sectoral indices are in the red.
Indian market continues to be in the red amid
coronavirus fears. The Sensex has dropped another 2,000 points as markets opened today.
Nifty is at 7,800 points. The last time it opened below 8100 points was on 26 December 2016. All sectoral indices are in the red as well.
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BSE Sensex opened below 27,000 and hit a three-year low as well. BSE mid-cap and small small-cap indices fell by over 5% each.
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After yesterday's high,
Yes Bank and Zee Entertainment are the top losers of the day so far. Yes Bank's stock has fallen by 22.66% and Zee Entertainment is down by 14.75%.
The only stock that's safely in the green for now is Power Grip Corp.
What’s next?
Yesterday the Sensex plunged by more than 1,700 points and Nifty fell by 498 points. Nifty was hit the worst falling by 7.11%.
Despite the Dow recouperating after the US government announced its plan for $1 trillion stimulus package to help the economy, it went back to its downward spiral last night falling by 1,338.46 points.
Asian stocks as a whole remain volatile though the sentiment seems to be more positive after the European Central Bank’s latest promise of a stimulus.
At home, this may improve tomorrow, March 20. The Reserve Bank of India (RBI) will purchase up to ₹10,000 crore of dated securities from the government via an open market operation (OMO. Yesterday, the apex banks stated that it will make the purchase through a multi-security auction using the multi price method.
“It’s important to ensure that all market segments remain liquid, stable and function normally,” said the bank’s statement.
The bigger concern is that global growth may shrink to 1% in 2020, according to The Economist Intelligence Unit (EIU). Their report suggests that four major economies — Japan, Italy, Germany and France — are likely to experience a full year recession.
“This is the lowest rate in global growth since the global financial crisis,” said the study.
