NEW DELHI: There’s no stopping carnage on Dalal Street as coronavirus outbreak reaches US shores. Domestic investors were meek spectators on Friday morning, as a record point-wise plunge for US Dow Jones in overnight trade set stage for worst weekly fall for global markets since 2008.
Within 5 minutes into trading, domestic stocks wiped nearly Rs 4 lakh crore of investor wealth with the total market capitalisation of BSENSE -2.00 % falling below Rs 150 lakh crore mark as investor fret that fast-spreading coronavirus will soon be listed as pandemic, which would have a far-reaching impact on the world economy.
At 9.50 am, the BSE Sensex was trading 1,145.29 points or 2.88 per cent lower at 38,600. NSE barometer Nifty fell 347.90 points or 2.99 per cent to 11,285.40. The BSE m-cap fell Rs 3.77 lakh crore to Rs 148 lakh crore.
This is the sixth day of consecutive slide for domestic stocks where investors lost Rs 10 lakh crore so far.
Data showed virus has infected more than 83,000 people globally. Mainland China has seen 2,788 deaths among 78,824 cases, mostly in the central province of Hubei. South Korea has reported 256 new coronavirus cases on Friday, taking its total — the highest in the world outside China — to 2,022.
A Reuters tally showed about 10 countries reported their first virus cases in past 24 hours, including Nigeria, the most populous country in Africa and the first case in sub-Saharan Africa.
“Markets are trying to price in real slow growth ahead, possibly negative growth. If you look what happened with the bond market, we saw yields making new record lows across the board. I would not be a bit surprised to see this market fall another 3-5 per cent before it catches its breath,” Peter Cardillo of Spartan Capital Securities told ET NOW.
According to reports, US state of California is monitoring more than 8,400 people, who arrived on commercial flights for coronavirus symptoms from “points of concern,” but the state lacks test kits and has been held back by federal testing rules, Governor Gavin Newsom said on Thursday.
All 50 Nifty stocks were trading in the red. Among the worst performers were Tech Mahindra (down 5.60 per cent), Tata Motors (down 5.13 per cent), YES Bank (5.03 per cent), JSW Steel (4.56 per cent) and Vedanta (4.44 per cent).
Over 100 stocks hit their lower circuit limits by 9.30 am and over 200 stocks hit their fresh 52-week low for the day.
The BSE Metal index plunged 6.14 per cent, followed by BSE Basic Materials (4.29 per cent) and BSE Realty index 4.81 per cent. The defensive BSE FMCG index, the least affected index, fell 2.32 per cent.
Among the recent worst falls, Sensex had dived 879 points on February 25. On April 14, 2019, the index slumped 800 points while on April 12, 2019, the index declined 799 points for the day. On October 10, 2018, the index plunged 832 points.
Earlier on Friday, the Nikkei 225 lost 3.08 per cent, or 676.55 points, to 21,271.68. The Hang Seng Index plunged 1.98 per cent, or 529.56 points, to 26,249.06. The benchmark Shanghai Composite Index shed 2.23 per cent, or 66.69 points, to 2,924.64.
In the overnight trade, Dow Jones posted its largest-ever points drop. The Dow Jones fell 1,190.95 points, or 4.42 per cent, to 25,766.64. The near 1,200-point drop for the Dow was its largest ever for a single session.
The S&P500 index lost 137.63 points, or 4.42 per cent, to 2,978.76 and the Nasdaq Composite dropped 414.30 points, or 4.61 per cent, to 8,566.48.
MSCI all country world index fell 3.3 per cent to bring its losses this week to 8.9 per cent (till Thursday), on course for its biggest weekly decline since a 9.8 per cent plunge in November 2008. Data showed foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 3,127.36 crore on Thursday.
India Inc seems to have started seeing the impact of disruption in global trade following the Coronavirus outbreak.
Chennai-based TVS Motor Company on Monday said the outbreak has impacted its supply of certain components, thereby hurting 10 per cent of its planned production for February.
The same day Tata Group hospitality chain The Indian Hotels Company (IHCL) said there was an impact from coronavirus spread on the business but was difficult to quantify as yet.
“It (impact) could be less in this quarter, and more going ahead. People are travelling less. People are worried,” Puneet Chhatwal, managing director and CEO told reporters.
Many Indian companies have of late cleared air on their dependence on China.
Somany Ceramics said its exposure to China is limited to machines and spare parts.
Gabriel India last week said the company is not much impact by the virus outbreak, even as there is some impact on the industry. Production, it said, is already started in China as told by the company’s suppliers.
Berger Paints said it does not see a significant impact.
In its conference call on February 12, VIP Industries said that luggage industry globally is dependent on China for luggage & bag-packs. “If production doesn’t restart in next 1 or 2 weeks, it will impact supply chain of luggage industry globally,” Narnolia Financial Advisors noted it as saying.
Container Corporation of India said its volumes are negatively impacted by coronavirus while Allcargo Logistics said its management is not very clear about the impact the business “as some of the business has started and some of the business started and closed,” Narnolia noted.
South Korea has reported 256 new coronavirus cases on Friday, taking its total — the highest in the world outside China — to 2,022. Brent crude oil futures fall over $1 to $50.66 a barrel in Friday’s trade.
Data showed foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 3,127.36 crore on Thursday.
Brent crude oil futures fell over $1 to $50.66 a barrel.