Sensex logs worst crash ever, dives 3,935 points to close at 25,981; Nifty settles at 7,610

NEW DELHI: Equity indices on Monday witnessed biggest-ever plunge with the benchmark BSE sensex falling over 3,900 points as coronavirus-led lockdowns across the world triggered fears of a recession. Covid-19 has infected more than 3,28,000 people and claimed over 14,300 lives across the globe. Cases in India rose to 415, according to the health ministry.
Sensex crashed 3,935 points or 13.15 per cent to close at 25,981; while the broader NSE Nifty plunged 1,135 points or 12.98 per cent to settle at 7,610.
The 30-share BSE index logged its worst fall in absolute terms (point-wise) compared to the previous 2,919-point plunge on March 12.
In morning deals, a steep plunge of 10 per cent -- lower circuit -- in the 30-share BSE pack resulted in a trading halt for 45 minutes.
As an automatic mechanism amid free fall in the stock markets, when an exchange plunges 10 per cent before 1 pm, trading is halted for 45 minutes.
After resuming trade, both the BSE and NSE indexes continued to fall further.
Major laggards in the BSE pack included Axis Bank, IndusInd Bank, Bajaj Finance, ICICI Bank, Maruti and Tech Mahindra with their stocks sliding as much as 27.63 per cent.
On NSE, sub-indices Nifty Bank, Private Bank and Financial Service fell as much as 17.37 per cent.
Analysts have said that trading this week -- both on the domestic and global platforms -- would continue to be guided by developments on the coronavirus front and concerns over its impact on the economic activity will most likely weigh on the markets.
"The markets will continue to focus on whether the virus infection rate peaks out and also on the coordinated actions of the RBI (Reserve Bank of India) and the government to support businesses with relief package," Vinod Nair, head of research, Geojit Financial Services, told news agency PTI.
During the last trading week till Friday, sensex plummeted 4,188 points or 12.27 per cent, while Nifty sank 1,210 points or 12.15 per cent.
Equity markets witnessed a relief rally on Friday after four days of fall and ended 1,628 points or 5.75 per cent higher at 29,916.
"Indian indices again plunged sharply this week, witnessing the biggest weekly loss since October 2008, as the increasing number of coronavirus cases in India as well as globally, continued to spook the markets," Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services, told PTI.
On the global front, Asian shares sank as a rising tide of national lockdowns threatened to overwhelm policymakers’ frantic efforts to cushion what is likely to be a deep global recession.
US stocks have already fallen more than 30% from their mid-February peak and even the safest areas of the bond market are experiencing liquidity stress as distressed funds are forced to sell good assets to cover positions gone bad.
“It would be a brave, or foolish, man to call the bottom in equities without a dramatic medical breakthrough,” Alan Ruskin, head of G10 FX strategy at Deutsche Bank, told news agency Reuters.
Meanwhile, the Indian rupee plummeted 102 paise to hit an all-time low of 76.22 against the US dollar.
(With agency inputs)