Indian stock markets sank today following a fresh selloff in global equities even as central banks around the globe announced fresh stimulus measures to prop up a global economy battered by the coronavirus outbreak. The Sensex fell 2,713 points to 31,390 while the broader Nifty tanked below 9,200. The rupee also fell sharply today.
Financials and metals led the selloff today in Indian markets today. IndusInd Bank fell 18% while Infosys, Tata Steel, HDFC, Axis Bank and ICICI Bank were down between 9% and 10%.
SBI Cards made a weak debut on exchanges today with shares ending 10% discount as compared to its issue price of ₹755, amid a selloff in broader markets.
Major European markets were down about 8-9% today while US stock futures dropped about 5%, hitting lower circuit breaker.
Overnight, the US Federal Reserve in an emergency move cut borrowing costs to almost zero - its second cut in less than two weeks - and unveiled a massive asset-buying programme, similar to measures put into place during the global financial crisis more than a decade ago.
The Fed measures however failed to calm investors' nerves right now with financial markets across the globe seeing high volatility.
The India VIX index or the volatility index, surged 13% to 58.25 as the number of coronavirus cases are going up in the country. According to the latest number, the number of persons who have been tested positive went beyond 110.
The rupee, which fell to a record low of 74.50 against the dollar on Friday, was weaker at 74.30.
Data released today showed China's factory production plunged at the sharpest pace in 30 years in the first two months of the year as the fast-spreading virus and strict containment measures severely disrupted the world's second-largest economy.
“One needs to keep in mind that volatility is going to remain for some time and we are not out of the woods yet as the number of cases of coronavirus are going up," said Rusmik Oza, Sr. VP (Head of Fundamental Research-PCG) at Kotak Securities Ltd.