The early Monday trade in the Bombay Stock Exchange and Nifty experienced bearish sentiments ahead of the Coronavirus scare and the Sensex crashed by more than 2000 points and Nifty crashed by more than 616 points.
The BSE’s Sensex as of 9:30 AM stood at 31,921 points after crashing by 2,182 points and the Nifty crashed by 616 points and stood at 9339 points.
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Investors are said to have lost about Rs 6000 crores.
Stock market traders have said that it would be better for people to stay away from the markets for a while and not resort to panic buying.
Apart from the scare of the COVID-19, a few other reasons are:
1. US Federal Reserves have slashed their key interest rate to shore up funds ahead of the economic crisis that threatens the world.
2. FII outflows- The Indian market is experiencing an outflow of FII due to many reasons.
3. Inflation– Later in the day, the government is expected to release the Wholesale Price Index numbers and with this, excise duty on petrol and petroleum products too have been hiked.
Last week, the Dalal street experienced a blood bath throughout the week and this trend does not seem to be ending in tough times ahead.