Sensex witness worst loss ever since 78 years

MUMBAI: Bombay Stock Exchange Sensex recorded its biggest single-day fall in terms of points, tumbling 1,942 points or 5.2% to 35,635. With Coronavirus’ impact and sliding oil prices, Dalal Street caved in under fears of financial instability in India due to the crisis at Yes Bank, the country’s fourth-largest private sector lender.

Reliance Industries closed an unprecedented 12% lower, resulting in it losing its crown as the most valued company in India to software services major TCS.

All 30 Sensex stocks closed the day in the red with ICICI Bank, TCS, and HDFC Bank also among the top contributors to the index’s loss.
The day’s selling was led by foreign funds, which recorded a net outflow of almost Rs 6,600 crore while domestic funds cushioned the crash with net buying of nearly Rs 5,000 crore.

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“The panic began after Saudi Arabia shocked oil markets by launching a price war. Italy has placed nearly 16 million people under semi-lockdown and the number of confirmed cases in Europe continues to rise,” said Deepak Jasani, head, retail research, HDFC Securities.

An index is said to be in the bear territory if it falls 20% from its peak. India’s Sensex is nearing bear territory, which would be at 33,800 points. Countries like Japan, Singapore, and the Philippines have already entered the dreaded zone while Australia and Hong Kong are within touching distance of doing so.

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