As the country withdraws into a 21-day lockdown, markets witnessed another day of mayhem after equity benchmark Sensex plunged over 1,100 points in the opening session on Monday. The Sensex plummeted by 1,375.27 points to end at 28,440.32 and the Nifty shed 379.15 points to 8,281.10. This bloodbath at Dalal street comes shortly after the head of the International Monetary Fund announced that it was clear that the global economy has now entered a recession which could be as bad or worse than the 2009 downturn.
"We have reassessed the prospects for growth for 2020 and 2021. It is now clear that we have entered a recession - as bad or worse than in 2009," told the IMF head to reporters on Friday.
The top losers on Monday were the Bajaj Finance which tanked up to 8 percent, followed by M&M, Tata Steel, Bajaj Auto, ONGC, HDFC Bank and Kotak Bank. On the other hand, TCS, Tech Mahindra, HUL, Axis Bank and ITC were the top gainers.
According to traders, investors across the globe are jittery over the rising number of COVID-19 cases around the globe and the economic fallout of the worldwide lockdowns. The COVID-19 virus has to date resulted in over 34,000 deaths across the globe.
On Friday, the Reserve Bank of India announced an array of measures to pump liquidity into the economy and lessen the economic stress on people and businesses. While the markets seemed to have had a short-lived recovery on Friday, the stimulus package announced by the RBI will have limited effect until the actual impact of the COVID-19 virus is known.
The total number of confirmed coronavirus cases in India rose to 1,071, including 942 active cases, said the Ministry of Health and Family Welfare on Monday. So far, 29 deaths due to the infection have been reported while 99 people have recovered and been discharged.