Indian Benchmark Indices Drop Well Below Their Crucial Levels
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The growing fear of coronavirus and increased COVID19 infections have wreaked havoc on the Indian stock markets. Both BSE Sensex and NSE Nifty have ended Wednesday in red, dropping well below their crucial levels of 40,000 points and 12,000 points respectively. 

The BSE Sensex dropped 392.24 points to close 0.97% lower while the NSE Nifty 50 lost 1.01% or 119.40 points to end the day at 11,678.50 points. About 1,601 shares lost today while 823 of them gained. However, there are 142 shares whose prices went unchanged today. 

A few of the notable losers are Sun Pharma, L&T, Tata Motors, Infosys and Maruti Suzuki. A few of the major gainers in the day are SBI, HCL Tech, Yes Bank, Britannia Industries, and Bharti Infratel. Coming to the sectors, the auto and energy indices have slipped nearly 2%, followed by pharma, IT, and metal.

Also Read: Indian Benchmark Indices Close in Red: Sensex and Nifty Close Below Their Crucial Marks

The BSE Midcap index fell 1.3% whereas the BSE Smallcap index closed Wednesday 0.8% down. The NSE Nifty 50 falling below 11,700 level has raised concerns among investors. However, the NSE Nifty is expected to take support at the level of 11,500. If the index drops below 11,500, the market could witness a significant selling pressure.

The Asian shares have had a bad Wednesday on the back of the United States Government issuing a warning to its citizens to gear up to battle against the possible coronavirus epidemic. This has impacted Wall Street once again and has made the yields on Treasuries (which is considered a safe haven) plummet.  

The MSCI’s broadest index of Asia-Pacific shares outside Japan was trading 1.1% lower. The Japanese market has been a low performer ever since the COVID19 virus outbreak is seen. The growing concerns and rising infections around the globe could possibly cancel the Tokyo Olympics, which is slated in late July and early August.

For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in

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