Equity benchmark indices dropped sharply during early hours on Monday in line with Asian peers as risk sentiment worsened due to the unabated spread of coronavirus (Covid-19) and a plunge in oil prices.
Oil fell the most since 1991 after Saudi Arabia started a price war with Russia by slashing its selling prices amid falling demand because of the virus outbreak.
At 10 am, the BSE S & P Sensex was down by 1,532 points or 4.08% to 36,045 while the Nifty 50 dived by 418 points or 3.8% at 10,572.
All sectoral indices at the National Stock Exchange were in the red with Nifty metal down by 5.2%, PSU bank by 4.3%, IT by 3.7% and realty by 3.3%.
Among stocks, ONGC cracked by 11.41% to Rs 78.40 per share. Metal and mining major Vedanta fell by 9 per cent while index heavyweight Reliance Industries dipped by 6.2% at Rs 1,191.50 per share.
Among the other major losers were IndusInd Bank, State Bank of India, Tata Motors, Tata Steel, Larsen & Toubro and Power Grid Corporation.
However, Yes Bank gained by 14.2% as State Bank of India got ready to unveil a reconstruction plan for the troubled private sector lender, which has been grappling with mounting bad loans and struggling to raise fresh capital. Bharat Petroleum Corporation gained by 5.5% while IndianOil Corporation rose by 2.1%.
The number of people infected has topped 107,000 across the world as the outbreak reaches more countries and causes more economic pain.
At the same time, oil prices plunged more than 20% after Saudi Arabia slashed its official selling price with plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia.
Japan’s Nikkei fell by 6.1% while MSCI’s broadest index of Asia Pacific shares outside Japan lost 3.7%.
Hong Kong’s Hang Seng index was down by 3.2%, South Korea’s Kospi by 3.8% and Shanghai Composite by 2.3%.
(With ANI Inputs)