Market heavyweights RIL tumbled 11.57 per cent and TCS tanked 5.84 per cent. (Photo Credit: File Photo)
Mumbai:
Investor wealth plummeted by over Rs 10 lakh crore in the first hour of trade on Monday as the equity markets went into a tailspin and sank 10 per cent. Rising cases of coronavirus (Covid-19) has hit market sentiment negatively, with the equity markets starting the week with a massive selloff. The market capitalisation of BSE-listed firms dropped by Rs 10,29,847.17 crore to Rs 1,05,79,296.12 crore just before the trading was halted for 45 minutes. Markets took a heavy beating as the BSE benchmark index plunged 2,991.85 points or 10 per cent -- its lower circuit limit. All the constituents from the BSE 30-share index witnessed selling led by Axis Bank, ICICI Bank, IndusInd Bank and Bajaj Finance, tanking up to 19.98 per cent. All the sectoral indices too traded with heavy losses led by bank, realty and finance. Market heavyweights RIL tumbled 11.57 per cent and TCS tanked 5.84 per cent. (Coronavirus Outbreak LIVE Updates)
During the last trading week till Friday, the Sensex plummeted 4,187.52 points or 12.27 per cent, while the Nifty sank 1,209.75 points or 12.15 per cent. As the virus cases climbed, the central and state governments in the country decided to lock down 75 districts from where Covid-19 cases have been reported to break the chain of transmission, and the Health Ministry said states would earmark hospitals to exclusively treat coronavirus patients. Putting in place a tighter framework to curb high market volatility, Securities and Exchange Board of India (Sebi) on Friday announced revising market wide position limit for stocks in the derivatives segment, flexing dynamic price bands and other measures for one month starting from Monday. Stock exchanges and regulatory officials, however, dismissed suggestions about curtailment of trading hours in wake of the pandemic. Bourses in Shanghai, Hong Kong and Seoul plunged up to 4 per cent, while Tokyo was trading with gains. On a net basis, foreign institutional investors sold equities worth Rs 3,345.95 crore on Friday, data available with stock exchanges showed. Meanwhile, Brent crude oil futures fell 3 per cent to USD 26.17 per barrel.
Meanwhile, automobile makers and auto component manufacturers in India have been asked to shut their plants by their respective industry bodies in view of the coronavirus pandemic. In view of the deteriorating situation arising out of COVID-19, SIAM (Society of Indian Automobile Manufacturers) and ACMA (Auto Component Manufacturers Association of India) have both requested their members to consider plant shut down. The members of SIAM and ACMA both in original equipment manufacturer (OEM) and auto component industry have been asked to consider plant shut down for a limited time to overcome the critical period so that workers are not exposed to the virus, SIAM President Rajan Wadhera said in a statement. "This is in line with SIAM's motto of 'Building the Nation, Responsibly," he added. Already Maruti Suzuki India, Tata Motors, Hyundai, Toyota Kirloskar Motor and Hero MotoCorp have announced temporary shut down of their respective manufacturing units as the coronavirus outbreak spreads across the country.
