BackSensex falls over 450 points, SBI, HDFC Bank lead losses
Most global markets were lower today amid fears over the spread of coronavirus and its impact on global economyOil prices also plunged 2% extending last week's selloff
PremiumIndian markets fell sharply today, tracking global peers lower, as fears about the economic impact of China's spreading virus outbreak curbed risk appetite. Banking and metal stocks led the decline. The Sensex fell 458 points to settle at 41,155 while the broader Nifty fell 1% to 12,119. Among the Sensex stocks, SBI and HDFC Bank both fell nearly 2.5% each while IndusInd Bank declined 3.3% and Tata Steel slumped 4.3%.
Analysts also expect Indian markets to remain volatile until the announcement of Budget on Saturday, which may include government measures to revive economic growth that has slipped to a more than six-year low.
"12,100 zone remains crucial for the bulls to hold as a decisive breach below the support zone would provide fresh momentum on the downside and in that event, index can test 11,800 support zone on the downside. Currently Nifty is in a range between 12,100-12,450 zone," said Amit Shah, technical research analyst at Indiabulls Ventures.
The broader markets outperformed with BSE midcap index falling 0.40% while smallcap index settled flat.
Pharma stocks also outperformed with the sectoral index on the NSE rising 1.5%. Dr Reddy's rose 5.5%, Aurobindo Pharma 2% and Piramal Enterprises 2% to be among the top gainers.
"Bears dominated the session throughout however, broader markets were not as bad. The pharma sector was buzzing with strong activity while metals witnessed sharp profit booking," Mr Shah of Indiabulls Ventures added.
The government today announced plans to sell its entire stake in Air India, in a revised push to sell its national carrier after an initial attempt to sell a majority stake in the airline failed to draw a single bid in 2018.
A government document set March 17 as the deadline for submissions of initial expressions of interest in Air India and said any bidder would have to agree to assume roughly $3.26 billion in debt, along with other liabilities. (With Agency Inputs)
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