The falling crude oil prices and fear of the economic impact of Coronavirus, the global markets have witnessed heavy sell-off.
The Indian equity markets witnessed a major fall on Monday, following weakness in the global markets amidst rising concerns over the impact of Coronavirus.
The S&P BSE Sensex made an intraday low of 35,109, down by over 6%, while the Nifty 50 index touched an intraday low of 10,294.45, the level last seen in December 2018.
Among the stocks, Reliance Industries witnessed a major fall of over 11 percent on the Bombay Stock Exchange to Rs 1,094.95 on Monday.
The oil and gas sector fell by over six percent. Led by private banks, the Nifty Bank index was down nearly 6 percent weighed. The crisis hit Yes Bank rose by over 40% to Rs 22.80 per share after State Bank of India’s decision of picking up a 49 percent stake.
The rupee, breaching 74-mark, witnessed further weakness in the afternoon trade hitting 74.49 against the US dollar.
Following OPEC’s failure of an agreement on production cuts, Goldman Sachs Group Inc. warned prices could drop to near $20 a barrel.
The crude oil witnessed the biggest intraday fall since the first Gulf War in 1991 after Saudi Arabia’s decision to cut prices amidst weakening global demand. The all-out price war between Saudi Arabia and Russia led to crude hitting as low as $31.02 a barrel.
The Coronavirus outbreak has spread to over 90 countries, reported the World Health Organisation (WHO) with over 110,000 cases worldwide and 3,830 deaths.