Advertisement

Updated April 1st, 2020 at 16:39 IST

Sensex loses 1203 points, Nifty 343 points on 1st day of FY-21, shares hit 52-week low

On the first day of the Financial year 2020-21, with the sharp rise in India's Coronavirus cases amid the 21-day nationwide lockdown, Indian markets plummeted

Sensex
| Image:self
Advertisement

On the first day of the Financial year 2020-21, with the sharp rise in India's Coronavirus (COVID-19) cases amid the 21-day nationwide lockdown to 1637 positive cases, the Indian stock markets plummeted on Wednesday. According to PTI, Sensex plunged by 1,203.18 points to end at 28,265.31 while Nifty tanked 343.95 points to close at 8,253.80. About 937 shares have advanced, 1075 shares declined, and 131 shares are unchanged, as per market reports.

Fact check: Is the financial year 2020 extended by the Indian Government?

Sensex crashes by 1203 points

Experts state that Nifty is down 30% from its recent record high of 12,430 hit on January 20, as almost 45 of the Nifty 50 companies have hit their multi-year low amid the global pandemic COVID-19. Moreover, reports state that 90% of the companies hit their 52-week low in March as India saw the rise in cases and record drop in demand. Foreign institutional investors (FIIs) have also pulled out more than Rs 60,000 cr investment from the Indian equity market in March alone and the MSCI has deferred its decision on increasing foreign inclusion factor (FIF) for the Indian markets, as per reports - affecting the markets negatively.

Banks implement EMI moratorium announced by RBI, allow installments deferment till May 31

This development comes after the Reserve Bank of India (RBI) announced further measures for dealing with the COVID-19 pandemic which included the extension of realisation period of export proceeds, review of limits of Way and Means advances of States/UTs and implementation of countercyclical capital buffer. The RBI has assured that the Central Bank can provide enough liquidity in the market amidst the COVID-19 crisis and has also announced a moratorium on all installments for a period of 3 months. India's current COVID-19 tally stands at 1637, with 38 deaths.

Coronavirus LIVE Updates: 2361 Nizamuddin Markaz occupants evacuated; total case at 1637

Why are markets falling - hit by Coronavirus?

The fear of the virus has disrupted business supply chains, while the number of positive cases has hit 872, 972 across the world. 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 have been brought to a standstill due to China closing off its borders. Currently, US which is the epicenter of the pandemic has extended its social distancing restrictions till April 30.

Coronavirus hits Indian stock markets: Sensex loses 1941 pts; most in one day for 10 years

 Other factors that have affected markets in India are the fall in crude oil prices as even domestic crude prices have fallen down to an 18-year low, with major Oil managing companies' shares hitting to a 52-week low.  Oil prices have reportedly slumped by 60% - the lowest since 1991 after Saudi Arabia slashed its prices in an alleged price war with Russia. Both countries are now reportedly set to increase production dramatically this month, after an agreement between OPEC and its allies to lower output expired at the end of March.

Advertisement

Published April 1st, 2020 at 16:39 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement

Trending Quicks

BREAKING: Mukhtar Ansari Suffers Heart Attack, Admitted to Hospital in Serious Condition
a few seconds ago
MS Dhoni lifting Ravindra Jadeja after IPL 2023 victory
5 minutes ago
Rain tax to be imposed in Canada from April
15 minutes ago
Tillu Square
17 minutes ago
Congress leader Mani Shankar Aiyar
22 minutes ago
Navi Mumbai: Man Accused Of Stealing Cardamom, Assaulted And Forced To Lick Shoes, 6 Held
24 minutes ago
Art for Hope
24 minutes ago
AIMIM
24 minutes ago
Bigbasket said it has altered its slotted delivery service to deliver within two hours against the earlier option of same day or next day delivery.
25 minutes ago
NC leadership’s presence at Mehbooba’s Iftar sparks talks of INDI alliance reconciliation
35 minutes ago
Secret weddings
37 minutes ago
Tata Steel
42 minutes ago
Advertisement
Advertisement
Advertisement
Whatsapp logo