The spread of coronavirus and a slump in the price of crude oil triggered a significant fall in the benchmark indices of India on Monday. Both BSE Sensex and NSE Nifty shed more than 6% each during the day and later erased some losses. The indices fell their highest in absolute terms. The VIX (volatility index) gained 21% to touch 31.05 levels.
The BSE Sensex lost as much as 1,942 points. It ended the day at 35,635 points, which is 5% lower. Reliance Industries dropped nearly 14% to touch its 52-week low at Rs 1,094.95 on the Bombay Stock Exchange. It conceded its first place in market capitalisation to TCS. Also, it was the most significant contributor to the fall of Sensex.
Apart from Reliance Industries, HDFC Bank, Infosys, TCS, HDFC, and ICICI Bank are the other stocks in the BSE Sensex that witnessed intensive selling. The BSE Sensex has now erased all the gains it recorded over the last ten months. Now it has fallen way lower than its crucial level of 40,000 points.
The NSE Nifty50 plummeted below its crucial level f 10,500 points. It ended Monday at 10,451 points. Nifty lost as much as 5% or 538 points. All sectoral indices ended the day in the red while the metal index lost the most. It dropped by 8%. Nifty Media and Nifty Bank slid 6.5% and 4.8% respectively. The S&P BSE SmallCap index fell 4% to 12,771 points while the S&P MidCap index dropped 4.7$ or 673 points.
The oil prices on Monday witnessed their most significant drop since the first Gulf War as Saudi Arabia reduced its costs amidst the crisis caused by the spread of coronavirus. Brent crude futures were trading 25% down. The US West, Texas Intermediate crude, shed 11.2$ a barrel.
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