Equity indices reeled for the fifth straight session on Thursday, pressured by a selloff in bank, IT and energy counters, as the global markets grappled with fears of the coronavirus outbreak turning into a pandemic.
The expiry of February series derivatives contracts, too, kept the domestic markets volatile, traders said.
After plunging over 465.69 points during the day, the 30-share BSE Sensex settled 143.30 points, or 0.36 per cent, lower at 39745.66. The broader NSE Nifty fell 45.20 points or 0.39 per cent, to end at 11633.30. The Sensex has lost 1,577.34 points in five days, while the Nifty has shed 492.60 points.
World markets extended their losses while safe-haven assets such as gold and US Treasuries strengthened after President Donald Trump announced that the US was stepping up its efforts to combat the Covid-19 outbreak, even as the number of cases surpassed 81,000 worldwide.
Markets in India were in the negative territory as the rapid global spread of coronavirus kept investors on the edge and made them seek safety in gold and bonds, said Narendra Solanki, head of fundamental research (investment services)-AVP equity research, Anand Rathi Shares & Stock Brokers.
India is at risk of getting severely impacted by the epidemic economically because of its high reliance on Chinese imports for various goods, he said.
Bourses in Seoul and Tokyo ended with significant losses, while Shanghai and Hong Kong closed with gains. Stock exchanges in Europe plunged up to 1.80 per cent in their morning sessions.
Brent crude futures fell 1.33 per cent to $52.11 per barrel.
Rupee gains
The rupee climbed 4 paise to close at 71.61 against the US dollar on Thursday amid easing crude prices and weakening of the greenback overseas.
Forex traders said the rupee consolidated in a narrow range as gains were restricted by sustained foreign fund outflows and robust selling in domestic equities.
Moreover, market participants will be keeping an eye on third-quarter GDP growth numbers scheduled to be released on Friday.
At the interbank foreign exchange market, the local currency opened at 71.65 to the dollar. During the day, it swung between a high of 71.55 and a low of 71.69 before settling at 71.59, up 6 paise from its previous close.
According to provisional data available with stock exchanges, so far this week, FPIs have offloaded stocks worth a whopping Rs 6,812.57 crore on a net basis.
Sectorally, BSE realty, oil and gas, metal, teck, IT, industrials, energy, telecom and auto indices ended up to 2.09 per cent lower, while consumer durables and healthcare settled on a positive note.
