Extending the opening losses, domestic equity market benchmarks Sensex and Nifty were trading nearly a per cent lower on Thursday dragged by selling in index heavyweights such as ICICI Bank, HDFC twins, RIL and TCS. S&P BSE Sensex dropped 327 points or 0.82 per cent at 39,540, while the broader Nifty50 index, slipped below 11,600-level to trade at 11,575 points. "The recent global developments indicate that the coronavirus could escalate into a pandemic, which is taking a toll on markets across the globe including ours. We thus advise continuing with the "sell on rise" approach in the index. Traders should focus more on stock selection and risk management until markets stabilise," Ajit Mishra, VP – Research, Religare Broking Ltd said.
HCL Tech top Sensex loser- All 30 Sensex stocks slipped in red in today’s trade. HCL Tech was the top laggard, down 2.64 per cent, followed by M&M, IndusInd Bank, Bajaj Finance and Tata Steel. In the broader market, the S&P BSE MidCap index slipped 202 points or 1.33 per cent, and the S&P BSE SmallCap index was down 225 points, or 1.57 per cent.
All sectoral indices slip in red- All the sectoral indices were trading deep in red. Nifty Realty declined the most, down 2.86 per cent. While the Nifty IT index, too was trading lower with the weakness in MindTree, Just Dial, and HCL Tech.
Futures and options expiry today- Market participants will rollover their positions from February series to March 2020 series. "Stocks are seeing erratic swings and the schedule derivative expiry of the February month contract would further add to the volatility," Ajit Mishra said.
Oil slips for the fifth session- Oil prices fell for a fifth day on Thursday to their lowest since January 2019 as a growing number of new coronavirus cases outside of China fuelled fears of a pandemic which could slow the global economy and lower crude demand. Brent crude was down 63 cents, or 1.2%, at $52.80 a barrel. West Texas Intermediate (WTI) futures fell by 65 cents, or 1.3%, to $48.08 a barrel, as per the Reuters news.
Coronavirus fears- Rising fears of a pandemic, which U.S. health authorities have warned is likely, had already wiped more than $3.6 trillion from global stock markets by Wednesday's close. China accounts for about 96% of cases and has instituted dire containment methods that have paralysed global supply chains, Reuters reported.