Domestic stock market plunged on Thursday, tracking steep losses in other global equity markets. The S&P BSE Sensex, slumped 2919.26 points or 8.18% at 32,778.14. The Nifty 50 index crashed 825.30 points or 7.89% at 9,633.10.
The selloff was triggered by the coronavirus fears after the World Health Organisation (WHO) declared the novel coronavirus (COVID-19) as a global pandemic. Following this, the US President Donald Trump announced to ban all travel from Europe to the United States for 30 days, except from the United Kingdom, to contain coronavirus blow. Markets have also been slammed this week by a plunge in oil prices, after oil exporters said they would increase output rather than cutting production.
In the broader market, the S&P BSE Mid-Cap index fell 7.62% and the S&P BSE Small-Cap index tanked 8.61%.
Sellers outpaced buyers. On the BSE, 217 shares rose and 2239 shares fell. A total of 108 shares were unchanged. In Nifty 50 index, all 50 stocks declined.
The Indian Government suspended all visas, except those issued for diplomatic, official, UN/international organisations, employment and projects till April 15. The decisions were announced after a group of ministers headed by health minister Harsh Vardhan met to review and take stock of the Covid-19 situation domestically and abroad.
According to a data provided by the Ministry of Health and Family Welfare, the total number of people who tested positive for COVID-19 stands at 73. The figure includes 17 foreign nationals.
Buzzing Index:
The Nifty Metal index slumped 8.65% to 1,815, extending losses for sixth day. The index has lost 21.79% in six sessions.
Steel Authority of India (down 13.24%), Vedanta (down 12.71%), Hindustan Copper (down 12.63%), Hindalco Industries (down 12.25%), NMDC (down 11%), National Aluminium Company (down 10.25%), Hindustan Zinc (down 10%), Jindal Steel & Power (down 9.97%), JSW Steel (down 8.77%) and Tata Steel (down 2.79%) declined.
Stocks in spotlight:
Mahindra & Mahindra slumped 6.54% to Rs 422.95. M&M signed a share purchase agreement for purchase of additional 34,249 equity shares of M. I. T. R. A. Agro Equipments (Mitra), an associate of the company, from its existing shareholders.
The company currently holds 26% (on a fully diluted basis) of the equity share capital of Mitra, and post completion of the above transaction, the Company will hold approximately 39% of the equity share capital of Mitra on a fully diluted basis.
Biocon tumbled 7.17% to Rs 275.15. The drug maker said the company has won a US court ruling that invalidated a Sanofi patent on the insulin Glargine, removing a key legal hurdle for commercialization of the product Semglee co-developed with Mylan, in the US.
Interglobe Aviation in a regulatory filing issued a notification regarding the impact of Coronavirus on the company. The company said in January and February 2020 it experienced modest impact from the Coronavirus. Subsequently, it cancelled flights to China and Hong Kong and reduced frequency to certain other Southeast Asia markets. This capacity was redeployed in other markets without having a material impact on our revenues However, over the past few days, the company witnessed a 15-20% decline in daily booking. The domestic budget carrier expects quarterly earnings to be materially impacted because of the decline. In addition, the rupee has also depreciated sharply which will have an adverse impact on company's dollar denominated liabilities primarily on account of capitalized operating leases. Shares of Interglobe Aviation fell 12.82% at Rs 1007.30.
SMS Pharmaceuticals lost 13.52% to Rs 29.75. The company in an exchange filing made after market hours yesterday announced the successful closure of inspection with the receipt of establishment inspection report (EIR) from United States Food and Drug Administration (USFDA) for the inspection conducted at its active pharmaceutical ingredient (API) facility situated at Kandivalasa, Andhra Pradesh during the period 13 to 17 January 2020.
KPIT Technologies declined 8.45% to Rs 71.50. The company on Wednesday (11 March 2020) said it will acquire a majority stake in Vayavya Labs (VL), an embedded software company focused on hardware-software interface tools & methodologies. The proposed acquisition of VL will give KPIT a head start in the field of simulation and embedded software automation, across the focus practices of KPIT. It will also help in creating a differentiated positioning and a definite early mover advantage in newer opportunities in the areas of simulation. The total consideration for 100% stake will not exceed Rs 41.80 crore. Initially 78.47% stake is proposed to be purchased for a consideration of Rs 24.56 crore. The balance 21.53% stake is proposed to be acquired over a period of 2 years.
Global Markets:
Shares in Europe and Asia slumped on Thursday after the United States suspended all travel from Europe in order to contain the coronavirus epidemic that has extracted a heavy human and economic toll worldwide.
Donald Trump, on Wednesday, 11 March 2020, said that the US has slapped a travel restriction from Europe to US for 30 days and the rules is said to come into effect from Friday midnight. The travel ban will affect 26 European countries which are a part of 'visa-free Schengen area.' POTUS further announced that he would ask Congress for legislative action to provide payroll tax relief, as well as other measures for several groups impacted by the virus.
On Thursday, 12 March 2020, European Central Bank is expected to announce its measures to mitigate the economic impact of the coronavirus. Investors across the globe would keenly look forward to the stimulus taken up in the monetary policy meet.
Meanwhile, auto sales in China plunged 79.1% in February, marking their biggest ever monthly decline, as a coronavirus outbreak hit demand, data from the country's largest auto industry association showed on Thursday. Total auto sales in China, the world's biggest auto market, fell to 310,000 units from the same month a year earlier, declining for a twentieth straight month, the China Association of Automobile Manufacturers (CAAM) said.
In US, stocks slumped on Wednesday, with the Dow ending in bear-market territory for the first time in more than a decade, after the World Health Organization designated the global spread of COVID-19 a pandemic, unnerving investors already disappointed with the lack of an economic policy response from the Trump administration.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)