Seeing a continued decline due to the Coronavirus lockdown, India's market indices - Sensex lost 535.86 points, closing at 31327.22 and Nifty fell by 159.50 points, closing at 9154.40, on Friday - April 24. Market reports state that 773 shares have advanced, 1545 shares declined, and 159 shares are unchanged. Analysts state that most industries slumped except for energy and pharmaceuticals.
Both indices opened at slumped rates - Nifty below 9200 level, due to the continued poor performance of the banking sector and the automobile sector, state reports. Moreover, as the day progressed, the Indian rupee too saw a decline in value, ending lower by 38 paise at 76.45 per dollar. While Coronavirus has wiped out the global economy, the most affected has been the oil industry which has seen oil rates slump to -$39, for the first time.
On Thursday, oil prices surged to a $22.70/barrel, jumping 5% as oil-rich nations have promised to cut output swiftly due to reduced global demand for fuel. On Friday too Brent crude prices fell slightly- ending at $20.60, while shale oil (US oil prices) fell by 5.09% to $15.66/barrel, as per PTI. This volatility in oil prices has been seen as Saudi Arabia slashed its prices in an alleged price war with Russia in order to boost demand. But due to the continued global lockdown and failure of OPEC talks, oil prices continued to fall as countries vow to cut 30% of oil production, match diminished demand.
The fear of the virus has disrupted business supply chains, while the number of positive cases has hit 27,45,765 cases and 1,91,806 deaths. Moody’s have estimated that coronavirus has increased the risk of a global recession as advanced countries United States, Japan, Germany, Italy, France, Britain, and Korea battle the virus, but the UN has claimed that India and China may be spared. Analysts have said that as China is the largest supplier of raw materials and manufacturing hub for different industries - core industries like automobiles, metal and pharmaceuticals' trade were brought to a standstill due to China closing off its borders, but now is seeing action as China picks up manufacturing. Currently, the Indian economy is at a standstill, as the nation is at a lockdown till May 3.