The stock market witnessed heavy selling on Monday as the Sensex lost 806.89 points to close at 40,363.23. With this decline, the market cap of the companies listed on the Bombay Stock Exchange (BSE) declined to Rs 3 lakh crore. In effect, this is the amount investors lost today.
During the trading, the Sensex had once slipped to 40,306.36. The Nifty ended the business at 11,829.40, down 251.45 points. It touched a low of 11,813.40 in intra-day.
Traders say that investors in markets across India are concerned due to the increasing cases of coronavirus in countries other than China. On Monday, 161 new cases were reported in South Korea. The number of infected patients has reached 763. The International Monetary Fund (IMF) has also said that recovery in a global economy already struggling with sluggishness may be difficult due to the impact of coronaviruses.
All 30 Sensex and 50 Nifty stocks marked a decline as they closed for today. All 11 sector indexes were at a loss on the NSE. Metal and auto sector stocks were sold higher. Investors sold the most under the metal index that fell to 5.36%. The auto index closed down 3.51%.
Investors are changing strategies in view of the increased risk of sluggishness in the global economy as coronavirus infection increases. Due to the increasing demand for gold in the international market, prices in the domestic market also increased.
The 24-carat gold price rose by Rs 953 to Rs 44,472 in Delhi Bullion Market. The silver rate increased by 586 to 49,990 rupees. Harish V, head (commodities), Geojit Financial Services, says that the demand for gold as a safe investment can continue even further.
The rupee weakened by 30 paise to 71.94 against the dollar today. This is the lowest level in two months. The rupee came under pressure due to weakness in the stock market and the strengthening of the dollar against the worldwide currency. However, due to the fall in the price of crude oil, the rupee got some support and the loss was reduced.