Domestic markets commenced the week with major losses as BSE Sensex nosedived almost 3000 points due to the coronavirus pandemic. Meanwhile, NSE Nifty 50 started the session at 7,945.70, down 799.75 points from the previous close. Tensions escalated after the government put 75 districts in lockdown from Monday after the seventh death reported in India. The losses are a result of a sharp decline in the Asian counterparts.
Talking to Republic TV, market expert Ajay Bagga stated that:
"With over 80 districts on a lockdown in India, the situation right now is grim. Expectation are that GDP in Q1 and Q2 will see a sharp fall globally as even the markets are reflecting it currently. Containing the virus and finding a cure to this virus will help in the recovery of the markets."
"As of now, it would be better if clients stick to cash. Investments can be held onto for sometime as the cuts have been too deep" added Bagga
Following the crash, trading has since been halted for over 45 minutes after circuit breakers were applied.
Meanwhile, the novel COVID-19 virus also inflicted a major hit on the Indian rupee which fell sharply against the US dollar. The rupee fell to 76.15 per US dollar, against previous close of 75.19. Prime Minister Narendra Modi is due to assess the losses and current state of the economy. According to reports, PM Modi will table a meeting with all industry bodies to discuss the current state of the econmy. The meeting will be held through a video conference on Monday at 4 pm.