The mayhem in domestic stock markets over the outbreak of COVID-19 coronavirus deepened with the BSE Sensex falling over 2,400 points and the Nifty50 trading below 10,400 points.
The plunge in the domestic indices was in line with the global markets on persistent fears of the economic impact of the Coronavirus epidemic.
The benchmark index of BSE Sensex was trading at 35,232.67 points, lower by 2,343.95 points or 6.24 per cent from the previous close of 37,576.62 points.
It had opened at the intra-day high of 36,950.20 and has so far touched a low of 35,109.18.
The Nifty50 on the National Stock Exchange was trading at 10,314.25 points, lower by 675.20 points or 6.14 per cent from the previous close.
It was a sell-off across sectors, led by financial, metal, energy and IT stocks – weighed on the markets.
Reliance Industries, HDFC Bank, ICICI Bank and HDFC were the top drags on Sensex, together accounting for a loss of more than 1,100 points on the index. Reliance Industries alone accounted for nearly 500 points fall in the Sensex.
Stocks of Reliance Industries nosedived 11 per cent in its worst single-day fall in at least 10 years as it fell to Rs 1,094.95 per share.
Oil prices also fell through floor since 1991 on Monday after Saudi Arabia shocked the market by launching a price war against Russia as they tried to cope with the virus outbreak.
Crude oil prices slumped around 30 per cent as Organization of Petroleum Exporting Countries (OPEC) failed to agree on an output cut deal, eventually causing Saudi Arabia to cut its prices as it is likely to increase its production. Saudi Arabia’s stance has already raised concerns of an all-out price war.
Russia and Saudi Arabia and other major oil producers lay battled to acquire market share between 2014 and 2016, as they tried to squeeze majority of the production from the US.
The fear in the market now is that oil prices may crash further as Saudi Arabia is taking an aggressive stance and is expected to flood the market with crude in a bid to recapture market share. Analysts have said that Saudi Arabia had slashed its April official selling prices by $6 to $8 a barrel in a bid to retake market share and heap pressure on Russia.