The Indian markets on March 16, 2020 resumed the sell-off due to weak global cues post surprise cut by U.S Fed on 15th March. The S&P BSE Sensex hit a low of 31,276.3 down by 2,827.18 points during intraday as compared to the previous closing of 34,103.48 on March 13. Whereas the NSE Nifty 50 hit a low of 9,165.10during the intraday. The index Sensex closed at 31,390.07 down by 2,713.41 points or 7.96 per cent and Nifty 50 index ended at 9,199.10 down by 756.10 points or 7.60 per cent.
“Indian markets opened on negative side following subdued Asian markets post surprise cut by the US Fed on Sunday and reacting to the shutdown taking place globally due to virus scare. During the afternoon session, the mood of the markets continued to remain dampened as credit pressures have intensified on India Inc as the coronavirus spread deepens. Investors shrugged off the lower wholesale inflation numbers which came in at 2.26 per cent in February. The wholesale inflation had stood at 3.1 per cent in the previous month,” says Narendra Solanki, Head-Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers
The broader markets BSE-Midcap and BSE-Smallcap closed lower by 5.9 per cent and 5.7 per centrespectively. On the sector front, all the indices witnessed heavy selling pressure wherein Metals, Banks, Realty and IT were the top losers in the range of 7.8-9.3 per cent. “The markets are showing no signs of stability as the economic impact of the Coronavirus is likely to be significant for many major economies. Even after the US Fed’s slashing of interest rates to a range of 0per cent to 0.25 per cent and the introduction of a $700 bn stimulus programme, investor sentiments remain weak. On the domestic front too, certain measures are expected from the government and RBI to protect the economy. However, given the uncertainty and increasing spread of the virus domestically, we expect that current choppiness could continue in the coming days,” says Ajit Mishra, VP - Research, Religare Broking.