Equity benchmark indices extended losses on Monday led by financial, metal, banking and auto stocks as the spread of coronavirus in China led investors globally to a shift from riskier assets to safe havens.
Investors assessed the possibilities of disruption to supply chains and said market nerves may remain frayed unless there are signs that the virus can be contained soon.
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The BSE S&P Sensex closed 458 points or 1.1% lower at 41,155 while the Nifty 50 was down by 129 points at 12,119. All sectoral indices at the National Stock Exchange were in the red except for Nifty pharma.
Nifty metal dipped by 3.34%, PSU bank by 2.25%, financial service by 1.4% and realty by 0.85%.
Among stocks, metal major were the worst sufferers with Vedanta down by 4.8 per cent at Rs 148.40 per share. Tata Steel fell by 4.6%, JSW Steel by 4.2% and Hindalco by 3.8%.
Banking majors too retreated with IndusInd Bank edging lower by 3.2%, HDFC Bank by 2.5% and State Bank of India by 2.4%. HDFC, Tata Motors and Bharti Airtel dropped between 2.2 and 2.5%.
However, Dr Reddy’s gained by 5.56% to close at Rs 3,200 per share despite reporting Rs 570 crore loss on impairment charge during the quarter ending December 2019. Mahindra & Mahindra, Eicher Motors, Cipla and UltraTech Cement showed marginal gains.
Meanwhile, Asian stocks traded lower as investors were worried about the economic impact of China’s spreading virus outbreak. Japan’s Nikkei suffered a steep 2.03 per cent loss on track for the biggest one-day fall in three weeks.
Trade in the region was already slow for the Lunar New Year and other holidays. Financial markets in China, Hong Kong and Australia were closed on Monday.
A day earlier, China’s National Health Commission said more than 2,700 people globally were infected and 80 in China killed by the disease.
(With ANI inputs)