Sensex plunges nearly 1,400 points, Nifty slips below 8,600

The BSE Sensex tanked nearly 1,400 points and was trading below the 30,000-mark during the intra-day trade on Wednesday. Nifty was down over 400 points and slipped below 8,600.

A market seesaw was observed on Wednesday when benchmark market equities indices swung from bull to bear territory during afternoon trading session.

Sensex fell as much 1,300 points or over four per cent at 29,286.72. Nifty, on the other hand, fell over 350 points or four per cent to 8583.80.

Market analysts and brokerages said such swings in the market could continue until there is some clarity over the outcome of the novel coronavirus pandemic.

Government’s around the world have announced generous stimulus packages while India’s central bank has assured market participants that it has reserves to tackle the crisis.

While the US benchmark Daw Jones managed to bounce back, it seems traders on Indian bourses are reflecting the nervousness of two consecutive rate cuts.

Traders on the street also say that investor sentiment has been deeply impacted by the virus outbreak, which has claimed over 8,000 lives globally. In India, it is believed to have entered it second phase with 148 infections and three deaths. However, cases are expected to rise.

Market volatility is also expected to remain high as fear of a possible economic recession looms large.

There are other concerns as well but the economic impact of Covid-19 on company operations may trigger a prolonged slowdown as companies stare at the government for billions in aid.

Market experts have recommended investors to stay calm and not engage in panic sell-off as it could result in more losses. However, even they are not sure when the markets would recover is it all depends on how the world tackles the virus in the coming days.