Coronavirus, global cues behind Sensex’s 392 pts fall, check other factors that dragged indices

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Updated: February 26, 2020 4:33 PM

Sensex slipped below its crucial 40,000 mark while Nifty traded below the psychological level of 11,700 in the last hour of today's trade.

Sensex, NiftyAs many as 24 out of 30 Sensex stocks ended in red. Sun Pharma was the top laggard, followed by Maruti, LT, Infosys and RIL

Domestic equity market benchmarks Sensex and Nifty continued to fall for the fourth consecutive session on Wednesday due to rising concerns over coronavirus. S&P BSE Sensex ended 392 points or 0.97 per cent lower at 39.888, while the broader Nifty 50 index settled at 11,678, down 119 points or 1.01 per cent. “Increasing concern regarding coronavirus in the world over is impacting the global market. The economic impact is expected to be worse than thought earlier forcing investors to stay away from risky assets. The domestic market is bracing for yet another subdued GDP growth, with a forecasted of 4.6% to 4.7% in Q3 compared to 4.5% in Q2, which is adding to the fear,” Vinod Nair, Head of Research at Geojit Financial Services said.

Sensex slids below 40,000 mark- Sensex slipped below its crucial 40,000 mark while Nifty traded below the psychological level of 11,700 in the last hour of today’s trade.

Top gainers and losers S&P BSE Sensex- As many as 24 out of 30 Sensex stocks ended in red. Sun Pharma was the top laggard, down 3.60 per cent, followed by Maruti, LT, Infosys and RIL. Conversely, SBI was the top Sensex gainer with a growth of half a per cent, followed by HUL, HCL Tech and Axis Bank.

Broader markets perform in-line with equity benchmarks- In the broader market, the S&P BSE MidCap index dropped 215 points, or 1.4 per cent, and the S&P BSE SmallCap index was down 120 points, or 0.83 per cent.

F&O expiry on Thursday- Markets are likely to remain volatile ahead of February series expiry on Thursday. “Uncertainty regarding coronavirus will continue to impact the equity markets while the February series expiry may cause volatility in tomorrow’s trading session,” Santosh Meena, Senior Research Analyst, TradinBells said.

Technical observation- A long negative candle was formed today with a gap down opening and the opening downside gap has been filled partially. The Nifty moved below the initial support at 11750 levels today, which is an upside gap of 4th Feb, filled the gap and closed lower. The Nifty is currently sliding down to the next key support of 11615 (a swing low of 3rd Feb),” Nagaraj Shetti – Technical Analyst, HDFC securities said.

Death toll from coronavirus in Iran rises- Nineteen people have died and 139 people have been infected by coronavirus in Iran, health ministry spokesman Kianush Jahanpur said on Wednesday in an announcement on state TV. Iran has had the highest number of deaths from coronavirus outside China, where the virus emerged in late 2019, as per the Reuters news report.

GDP may be recorded at 4.7% in December quarter- GDP growth for Q3FY20 is expected to be under 5 per cent. Despite the government and RBI announcing a slew of measures to boost growth, the economy is seeing a limited impact, a report by CARE Ratings said. December quarter GDP numbers will be released on Friday. A subdued bank credit growth continuing is likely to weigh on the growth of this segment. The mining and quarrying, manufacturing and construction sectors are expected to see negative growth, the report also said.

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