oppn parties Coronavirus Spooks Stock Markets Worldwide

News Snippets

  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • BJD leader and former Odisha CM Naveen Patnaik said that the criticism of his aide V K Pandian is "regrettable"
  • As more than 20 BJP ministers lost in the recent elections, the new Union cabinet will have many new faces from the party
  • Congress Working committee asks Rahul Gandhi to take up the position of Leader of Opposition in Lok Sabha. Gandhi says he will consider the request
  • RBI governor Shaktikanta Das said that gold was shifted to India as the quantum of RBI gold abroad had increased due to recent purchases
  • Delhi HC rules that submitting photographic evidence of adultery will not be enough, they will have to be proved as authentic in the age of deepfakes
  • A four-member panel will review NEET-UG results of 1563 candidates to check if they were given extra marks for exam time loss
  • Mamata Banerjee says her party will not join Modi's oath-taking ceremony. Also says INDIA bloc might stake claim to form government later
  • K C Tyagi of the JD(U) dropped a bombshell when he said that Nitish Kumar was offered the post of prime minister for switching sides. Opposition leaders rubbished the claim
  • This May was India's hottest month in 36 years says IMD
  • T20 WC: India take on Pakistan today. Telecast to begin at 8pm IST
  • T20 WC: Afghanistan stun New Zealand and Bangladesh win against Sri Lanka
  • T20 World Cup: Australia beat England by 36 runs. This spoils England's chances of making the playoffs as they have lost both their matches till now
  • Heat wave continues in the country as monsoon moves slow
G7 commits to promote India-Europe corridor
oppn parties
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.