oppn parties Coronavirus Spooks Stock Markets Worldwide

News Snippets

  • EMI's set to rise after the RBI hikes key policy rate
  • Calcutta HC says that the right to privacy does not end with the death of a person
  • Supreme Court says that a delayed order of preventive detention makes it invalid
  • Shashi Tharoor posts an erronous map of India in his manifesto, rectifies the error after criticism
  • Sonia Gandhi to take a call on who will be Rajasthan chief minister
  • Mallikarujun Kharge to be the new candidate to oppose Shashi Tharoor in the Congress presidential elections
  • RBI says that the September inflation rate may be higher than 7%
  • RBI hikes key rates by 50bps, downwardly revises FY23 growth rate to 7% from 7.2% earlier
  • Stocks recover well on Friday: Sensex gains 1016 points to0 57426 and Nifty 276 points to 17094
  • Mirabai Chanu wins gold easily at the National Games
  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
RBI hikes key rates by 50bps, stocks jump and recover 50% of the losses incurred in the last few session
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Coronavirus Spooks Stock Markets Worldwide

By Linus Garg
First publised on 2020-02-28 20:30:02

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

In line with the bloodbath on all the stock exchanges across the world, the Indian stock market indices plunged heavily today to send shivers across the spines of investors. The Sensex plunged by 1448 points which are the equivalent of 3.64% while the Nifty slid by 432 points or 3.71%. It meant that in a single day, investor wealth of over Rs 5.5 lakh crore was wiped out. In the last six trading sessions, the Sensex has lost a combined 2872 points.

Across the globe, investors are worried that the rapid spread of Covid-19 to more and newer places means that there will be a huge global economic slowdown and business will suffer. People are worried that since Chinese products will be shunned, those economies that import components from China will be immediately affected. They are also worried that the US and other Western nations, consumers of high-end products from many countries, will postpone orders and it will have a multiplier effect on the slowdown. These fears have allowed the bears to tighten their grip on markets worldwide.

Not that the fears are unfounded. With deaths running into thousands in mainland China and newer cases being reported in countries such as Iran, South Korea and Italy, there is no saying how, and how fast, the virus will spread in the coming days. At least 48 countries have until now reported confirmed cases. Since there is no immediate antidote available for the virus, the response of the authorities in each country is also not predictable. The fight against the virus is going to take up resources and time throwing business activity out of gear. Hence, investors are feeling the jitters and most are selling short to limit their losses. In such a scenario, the immediate outlook is bleak and it will take a while before the market bottoms out.