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Sensex slumps 1,375 points, Nifty settles at 8,281; financials, banking stocks weigh

The stock market opened over 3 per cent lower on Monday. (Express photo by Pradip Das)

The benchmark equity indices on the BSE and National Stock Exchange (NSE) began the week on a negative note, as they settled over 4 per cent lower on Monday tracking a fall in the broader Asian market and global oil prices which declined as fears mounted that the global shutdown for the coronavirus could last for months, doing untold harm to economies despite central banks' best efforts.

The S&P BSE Sensex slumped 1,375.27 points (4.61 per cent) to settle at 28,440.32, while the broader Nifty 50 ended at 8,281.10, down 379.15 points (4.38 per cent). Both the indices traded in the negative territory throughout the day with Sensex slipping as much as 1,524.60 points (5.11 per cent) to 28,290.99 during the intraday trade. The 50-share NSE benchmark too had slipped 416.25 points (4.81 per cent) to 8,244.00.

As many as 24 out of 30 stocks on the Sensex settled lower on Monday. Bajaj Finance, Housing Development Finance Corporation (HDFC), Tata Steel, Kotak Mahindra Bank, HDFC Bank and ICICI Bank were the top losers of the day while Nestle India, Tech Mahindra, Hindustan Unilever (HUL), Axis Bank, Titan Company and IndusInd Bank were the gainers. (see the heatmap below)

Gainers and losers of the day on the Sensex. (Source: BSE)

All the sectoral indices on the NSE except Nifty FMCG and Nifty Pharma settled in the red on Monday. The Nifty Financial Services index was the worst performer of the day, ending 7.43 per cent lower dragged by Shriram Transport Finance Company, Bajaj Finance, HDFC and Mahindra & Mahindra Financial Services. This apart, the Nifty Bank index ended 6.06 per cent lower weighed by Bandhan Bank, The Federal Bank, Kotak Mahindra Bank and HDFC Bank.

Here's how the sectoral indices performed:

Sectoral gainers and losers of the day on the National Stock Exchange. (Source: NSE)

Apart from these, in the broader market, the S&P BSE MidCap index ended at 10,312.98, down 224.88 points (2.13 per cent), while the S&P BSE SmallCap index closed at 9,330.94, down 166.30 points (1.75 per cent).

"As expected, the markets have set aside the stimulus measures announced by the RBI and the government, and focused on the rising virus infections and its impact on the Indian economy. With a global recession already declared by the IMF, the recessionary forces and the general uncertainty are forcing investors, especially the FIIs, to redeem their investments. CPI for Industrial workers is due tomorrow, although it is unlikely to have an effect in the current market scenario," Vinod Nair, Head of Research at Geojit Financial Services said in a statement post the market hours.

Rupee

The rupee traded on a weak note on Monday, having slipped to 75.59 against the US dollar during the intraday trade. The domestic unit was last seen trading around 75.50-level mark during the late afternoon trade, according to data by Bloomberg. The rupee had settled at 74.8538 against the greenback on Friday.

Global market

In the global markets, world shares buckled again as fears mounted that the global coronavirus shutdown could last
for months.

There were some bright spots, with Australian equities posting a standout jump as the government launched a super-sized
support programme, but that was about it.

Japan's Nikkei had led the rest of Asia lower and Europe's main markets slumped by 1.5-2.5 per cent in early trade, adding to what has already been the region's worst quarter since 1987.

Australia's benchmark ASX200 registered a late surge, closing 7 per cent up after Prime Minister Scott Morrison unveiled a
$130 billion ($79.86 billion) package to help to save jobs.

Most other markets were down but trimmed earlier losses.

Japan's Nikkei dropped 1.6 per cent, Shanghai blue chips were down 0.9 per cent and there were sharper drops in Southeast Asia, with Singapore' benchmark index down
almost 3 per cent.

JPMorgan now predicts that global GDP could contract at a 10.5 per cent annualised rate in the first half of the year.

Crude oil

Oil prices fell sharply on Monday, with US crude briefly dropping below $20 and Brent hitting its lowest level in 18 years, on heightened fears that the global coronavirus shutdown could last months and demand for fuel could decline further.

Brent crude, the international benchmark for oil prices, was down $2.09, or 8.4 per cent, at $22.84 by 0917 GMT, after earlier dropping to $22.58, the lowest since November 2002.

US West Texas Intermediate (WTI) crude fell $1.11, or 5.2 per cent, to $20.40. Earlier in the session, WTI fell as low as $19.92.

The oil markets have been slammed by demand destruction caused by the coronavirus pandemic and the Saudi Arabia-Russia price war that is flooding markets with extra supply.

- With global market, oil prices inputs from Reuters