Sensex sheds 284 points, turns negative for 2020; China virus concerns weigh

Mumbai: Benchmark equity index Sensex shed 284 points on Thursday eroding all gains for the year so far, as it joined the selloff from New York to Tokyo markets on mounting concerns about the economic impact of an epidemic in China that has claimed 170 lives so far.

The US Federal Reserve Chairman Jerome Powell also acknowledged the risks from any slowdown in the Chinese economy, but said it was too early to judge the impact on the United States, Reuters reported.

The Fed held interest rates steady on Wednesday at its first policy meeting of the year, with Powell pointing to continued moderate economic growth and a “strong” job market.


The 30-share Sensex closed 0.69 per cent, or 284.84 points lower, at 40,913.82, while 50-share Nifty dropped 0.77 per cent, or 93.70 points, to close at 12,035.80.

Year to date, Sensex and Nifty are down 0.82 per cent and 1.09 per cent, respectively.

Markets at a glance:
Bears were in charge as more than two shares declined for every share that advanced on the BSE.

Fall was steeper for the broader market, as BSE 500 index declined 1.02 per cent. BSE Midcap and BSE Smallcap indices dropped 1.39 per cent and 0.95 per cent, respectively.

All sectoral indices closed lower. BSE energy index led the decline, as it fell 2.29 per cent.

As many as 23 Sensex stocks closed lower. Energy-to-telecom conglomerate Reliance Industries was the top loser, and dragged Sensex down the most by 112.15 points, as it fell 2.65 per cent. Private lender HDFC Bank dropped 0.85 per cent.

Bajaj Auto was the top Sensex gainer. It jumped 1.54 per cent after the two-wheeler maker reported a 15 per cent year-on-year rise in net profit at Rs 1,262 crore.

Tata Motors erased early gains, and slumped 1.20 per cent ahead of third-quarter earnings announcement.

YES Bank tanked 5.34 per cent after India Ratings (Ind-Ra) expressed doubts over the private lender's capital rising plans. The rating agency said raising sizable capital in the near-term could be challenging for the company.

Escorts Limited jumped 10.16 per cent after the farm-equipment maker reported 9 per cent jump in standalone profit for the December quarter.

Analysts’ views:
"Fears of economic slowdown as the coronavirus spreads to other nations has dampened the mood of investors across the globe. A slew of results announced so far failed to provide a picture of economic revival with banks disappointing due to weak asset quality that triggered profit booking. With expectations high, the market to stay focused on the upcoming budget for further green shoots in the economy,” -- Vinod Nair, head of research, Geojit Financial Services

Global markets:
Asian and European shares dropped on Thursday hurt by concerns over the impact of the coronavirus epidemic in China.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8 per cent to an almost seven-week low. Japan’s Nikkei fell 1 per cent. The pan-European STOXX 600 dropped 0.9 per cent by 0805 GMT, heading for its sharpest weekly decline in nearly four months.

MSCI world equity index, which tracks shares in 49 countries, fell 0.5 per cent.