Indian Stock Markets Continue Their Free Fall Due to Global Cues

Global oil benchmark Brent crude futures plunged nearly 30 per cent to USD 32.11 per barrel after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets. Continuing its downward spiral, the 30-share index was plunged 1515.01 points, or 4.03 per cent, to 36,061.61. The NSE Nifty too cracked 417.05 points, or 3.80 per cent, to 10,572.40.

SMEStreet Desk

09 Mar 2020 07:28 IST

New Update

Equity benchmark Sensex plummeted over 1,500 points in opening session on Monday led by a deepening rout in global markets amid rapidly-spreading coronavirus and sinking crude prices.

Global oil benchmark Brent crude futures plunged nearly 30 per cent to USD 32.11 per barrel after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets.

Continuing its downward spiral, the 30-share index was plunged 1515.01 points, or 4.03 per cent, to 36,061.61. The NSE Nifty too cracked 417.05 points, or 3.80 per cent, to 10,572.40.

In the previous session, the 30-share BSE barometer settled 893.99 points or 2.32 per cent lower at 37,576.62. Likewise, the Nifty tanked 279.55 points or 2.48 per cent to close at 10,989.45.

On a net basis, foreign institutional investors sold equities worth Rs 3,594.84 crore, while domestic institutional investors bought shares worth Rs 2,543.78 crore on Friday, data available with stock exchanges showed.

ONGC was the top laggard in the Sensex pack, nosediving up to 11 per cent, followed by IndusInd Bank, RIL, PowerGrid, Tata Steel, L&T, SBI and Tech Mahindra.

Sun Pharma was the sole gainer.

According to traders, investor sentiment took fresh beating as oil prices plunged nearly 30 per cent, adding to the heightened volatility in global markets amid concerns over the rapidly-spreading coronavirus.

Incessant foreign fund outflow also spooked market participants, traders said.

Bourses in Shanghai dropped over 2.41 per cent, Hong Kong 3.53 per cent, Seoul 3.89 per cent and Tokyo cracked up to 5.65 per cent.

Global crude prices tanked after Saudi Arabia on Monday cut its price for April delivery by USD 4-6 a barrel to Asia and USD 7 to the United States, with Aramco selling its Arabian Light at an unprecedented USD 10.25 a barrel less than Brent to Europe, reports said.

Back home, the Yes Bank crisis has raise concerns over the stability of the country's banking system, adding to the woes of domestic investors, traders said.

The rupee, meanwhile, was trading flat at 73.89 against the US dollar in morning session.

NSE BSE Stock markets