Sharemarket Experiences 10 Percent Plunge Hit By The COVID-19 Panic

By CIOReviewIndia Team | Friday, 13 March 2020, 06:55 IST

                                  Sharemarket Experiences 10 Percent Plunge Hit By The COVID-19 Panic

First time in the last 10 years, the Indian sharemarket came at a point of trading halt along with stock prices falling by another 10 percent. The increasing panic about the spread of COVID-19 in the major cities of the country has led to drasdic downfall in some of the core manufacturing sectors of the country. A lot of raw as well as finished products were imported by India from China. In all those sectors where India was dependant on China for manufacturing ave been affected by the COVID-19 outbreak and nothing about the recovery of the conditions can be said as of now.

“Fear is controlling markets right now, no one knows what is going to happen. Fear of death is more painful than death itself,” said Sumit Pokharna, vice-president, Kotak Securities expressed to the media. “This is not a point where markets will be reacting to economic stimulus because of the social distancing that is in play. So in the near term, stimulus may not help cool off current panic,” added Anand James, chief market strategist at Geojit Financial Services.

The Coronavirus outbreak in China has not only crushed the Indian economy, bust also is responsible several major crashdowns all across the world. Italy has been completely shut down because of this panic and even the governmnet claims not to have to taken the situation under control yet. When it comes to China, ther government claims to have sustained the spread but China being the origin of it all is still a serious subject of concern.

The COVID-19 outbreak has made airlines across the world tend to cost cutting measures and ban all the flights to the coronovairus affected regions. This has caused to the cancellation of bookings worth $116 Billion which is a major crash to the aviation economy. The steel industry in India has also been majorly affected by the virus outbreak as a lot of steel spare parts were being imported from China which has come to total halt. Other major sectors have also been subject to damage which has resultantly caused in the stock market crash.

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