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Sensex falls for 5th day as coronavirus spreads to more countries

Domestic investors have lost Rs 6.3 lakh crore in equity wealth in the last five sessions.

Last Updated: Feb 27, 2020, 04.35 PM IST

Sensex and Nifty have ended in the red in nine out of the last 10 trading sessions.

NEW DELHI: The correction in the domestic equity market showed no signs of abating, as benchmarks recorded their longest losing streak since October, with Sensex and Nifty falling for the fifth session in a row on Thursday.

Domestic investors have lost Rs 6.3 lakh crore in equity wealth in the last five sessions.

The reasons for Thursday’s fall
were plenty, ranging from the coronavirus scare, expiry of February futures and options contracts, and worries over India’s third-quarter GDP print. Moreover, selling by foreign institutional investors added to the pain.

BSE flagship Sensex ended 143 points or 0.36 per cent lower. The benchmark had dipped to 39,423, down 466 points in intraday trade. Its NSE counterpart Nifty settled at 11,633, down 45 points or 0.39 per cent.

The volatility index, India VIX, declined 3.65 per cent to 17.59.

Sensex and Nifty have ended in the red in nine out of the last 10 trading sessions.

On BSE, the market breadth leaned heavily in favour of the sellers, with the advance-decline ratio at 3:5.

Market at a glance
In the Sensex pack, 20 of 30 stocks ended in the red. Bank and IT stocks were the top index drags.

ONGC, HCL Tech, Mahindra & Mahindra, SBI and IndusInd Bank were the biggest index losers, shedding between 1.71 per cent and 2.61 per cent.

On the other hand, Sun Pharma with a rise of 3.68 per cent to Rs 388.40 apiece was the best performing Sensex stock. Titan, Axis Bank, Asian Paints and Maruti Suzuki were among other top gainers.

The broader market suffered a similar fate as benchmarks, with BSE Midcap and BSE Smallcap indices declining 0.65 per cent and 0.83 per cent, respectively.

In the sectoral space, only two out of 19 constituents ended in the green, namely consumer durables and healthcare. BSE Realty with a decline of 2.09 per cent was the worst performer, followed by Oil & Gas that shed 1.26 per cent.

Analyst Take
"The domestic equity market got impacted by weak expiry of monthly F&O series and selling in global markets due to the spread of coronavirus cases. Till last week the market was of the view that coronavirus is going to have only a minimal impact on the global economy, as the situation in China was being contained. But an increase in the number of new cases is changing the view and there are fears of some slowdown in the global economy." -- Vinod Nair, Head of Research, Geojit Financial Services

Global markets
Stocks resumed their plunge, wiping out more than $3 trillion in value this week alone, on Thursday as the coronavirus spread faster outside China and investors fled to safe havens.

The pan-European STOXX 600 index opened 2.3 per cent lower and Italy's blue-chip index sank. Dozens of European companies have warned about potential damage to their profits.

In the United States, Microsoft became the second trillion-dollar company to warn about its results after Apple.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 per cent, taking it more than 4 per cent lower for the week

Also Read

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Will Sensex become zero? Should I sell all my mutual funds?

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