As Coronavirus continued to weigh-in on domestic equity markets, S&P BSE Sensex tanked 10 per cent in the initial hour of trade.
The market capitalisation of all BSE-listed firms stood at Rs 105.9 lakh crore on Monday morning, down from Rs 116 lakh crore on Friday.
As Coronavirus continued to weigh-in on domestic equity markets, S&P BSE Sensex tanked 10 per cent in the initial hour of trade, falling to 26,924 points which forced the market regulator to halt trading for 45 minutes on the Indian stock exchanges. The broader NSE Nifty-50 slipped below the 8,000 mark, falling 9.63 per cent or 842 points. All 30 constituents of the S&P BSE Sensex were deep in red. Axis Bank, ICICI Bank led the fall with a 20 per cent and 15 per cent fall, respectively.
The market capitalisation of all BSE-listed firms stood at Rs 105.9 lakh crore on Monday morning, down from Rs 116 lakh crore on Friday. Translation to Rs 10 lakh crore worth Investors money gone in the wind in just an hour. The trading halt, imposed after Sensex hit the lower circuit, is the second time trading has been stopped for a 45-minute duration on the Indian bourses in just one month. Earlier, on March 13 it was the NSE Nifty that hit its lower circuit after sinking 10 per cent.
As a measure to curb excessive volatility, circuit breakers are triggered on the basis of three thresholds for stock movement — 10 per cent, 15 per cent and 20 per cent. The BSE and the NSE compute the index circuit breaker limits for 10 per cent, 15 per cent and 20 per cent levels on a daily basis based on the previous day’s closing level of the index rounded off to the nearest tick size, HDFC Securities said earlier this month explaining the trading halt.
Marquee names like RIL, HDFC, TCS and Tata Steel were all deep in red before the trading was stopped for 45 minutes. Reliance Industries was down 11.5 per cent; HDFC slipped 7.2 per cent; TCS was down 5.8 per cent and Tata Steel was down 9.2 per cent. Banks were the biggest losers with Nifty Bank down 12.7 per cent while all constituents of the S&P BSE Bankex were in the red. The fall was led by Axis Bank down 20 per cent.
Coronavirus continued to guide the market movement as India prepared for a lock down of over 80 districts to fight the pandemic. So far, 369 cases have been found in India with 7 deaths being reported due to Coronavirus.