The aviation sector is expected to be hit as travel restrictions kick in and fewer people fly.
Share prices of aviation companies InterGlobe Aviation (IndiGo) and SpiceJet were under pressure as rising coronavirus cases make the skies gloomier for air carriers.
SpiceJet price cracked more than 8 percent to hit its 52-week lows of Rs 68.25, while IndiGo fell nearly 5 percent in the morning trade on BSE on March 4.
If both the stocks end in the red, it will be their fifth consecutive session of losses.
As per rating agency ICRA, the outlook for India's aviation industry remains "negative" in the wake of the viral outbreak.
The coronavirus has now spread to 73 countries, including India, and killed more than 3,000 people, most of them in China. India has, so far, confirmed six cases.
Investor sentiment is fragile and the market is volatile as the virus that causes respiratory distress has aggravated concern about the health of the global economy.
The outbreak is bad news for the Indian aviation industry already reeling under passenger traffic slowdown. The international traffic growth in the nine months of FY2020 declined 8.4 percent.
Even the drop in crude prices has not helped, as coronavirus is expected to hit travel demand.
Shares of SpiceJet were trading 5.78 percent down at Rs 70.05, while those of IndiGo were 3.39 percent down at Rs 1,187.50 on BSE at 1030 hours.Subscribe to Moneycontrol Pro's Annual plan for Rs 399/- for the first year. Use coupon PRO2020 (Available on Web & Android only).
