Sensex drops over 1500, Nifty cracks 417 points as crude oil prices sink

Equity benchmark Sensex plummeted over 1,500 points in the opening session on Monday led by a deepening rout in global markets amid rapidly-spreading coronavirus and sinking crude prices.

Global oil benchmark Brent crude futures plunged nearly 30 per cent to USD 32.11 per barrel after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets. Continuing its downward spiral, the 30-share index was plunged 1515.01 points, or 4.03 per cent, to 36,061.61.

The NSE Nifty too cracked 417.05 points, or 3.80 per cent, to 10,572.40. In the previous session, the 30-share BSE barometer settled 893.99 points or 2.32 per cent lower at 37,576.62. Likewise, the Nifty tanked 279.55 points or 2.48 per cent to close at 10,989.45.

On a net basis, foreign institutional investors sold equities worth ₹ 3,594.84 crore, while domestic institutional investors bought shares worth ₹ 2,543.78 crore on Friday, data available with stock exchanges showed.

ONGC was the top laggard in the Sensex pack, nosediving up to 11 per cent, followed by IndusInd Bank, RIL, PowerGrid, Tata Steel, L&T, SBI and Tech Mahindra. Sun Pharma was the sole gainer. Oil marketing companies like HPCL, BPCL and IOC began on a lower note.

According to traders, investor sentiment took a fresh beating as oil prices plunged nearly 30 per cent, adding to the heightened volatility in global markets amid concerns over the rapidly-spreading coronavirus. Incessant foreign fund outflow also spooked market participants, traders said.

Bourses in Shanghai dropped over 2.41 per cent, Hong Kong 3.53 per cent, Seoul 3.89 per cent and Tokyo cracked up to 5.65 per cent.

In India, the Yes Bank crisis has raised concerns over the stability of the country’s banking system, adding to the woes of domestic investors, traders said. The rupee, meanwhile, was trading flat at 73.89 against the US dollar in the morning session.