Sensex, Nifty Set For Another Day Of Mayhem Amid Coronavirus Fear

Domestic markets are bracing for yet another day of mayhem, after a global selloff on Thursday amid the fast-spreading coronavirus outbreak pulled benchmark indices down more than 8 per cent. The Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty index in India - shed 871.75 points to hit a multi-year low of 8,708.25 ahead of the opening of Indian markets on Friday. At 8:12 am, the SGX Nifty futures were down 636.00 points - or 6.64 per cent - at 8,944.00.

Analysts say that global economy is likely to bear the brunt of the coronavirus pandemic as the number of cases soars and policymakers scramble to shield major economies from the outbreak. 

Equities in other Asian markets went into a free-fall, with Japan's Nikkei 225 index dropping 10 per cent, and heading for its worst week since the 2008 global financial crisis. MSCI's broadest index of Asia-Pacific shares outside Japan fell 2 per cent.

The selloff gathered pace after US President Donald Trump's announcement to ban travel from Europe spooked investors, and after the European Central Bank disappointed markets by holding back on rate cuts.

Concerns over the virus have hammered financial markets and disrupted businesses globally as countries around the world grapple with how to contain the outbreak and its economic impact.

Investors worry whether the stimulus steps can quickly turn around the global economy as concerns grew that the number of infections could quickly snowball in many countries. More than 100,000 people have been infected by the virus around the globe. Late on Thursday, India reported its first death due to the virus.

On Thursday, the S&P BSE Sensex index had declined 2,919.26 points -  8.18 per cent - to end at 9,590.15, and the broader NSE Nifty benchmark fallen 868.25 points - or 8.30 per cent - to settle at 9,590.15, in their worst plunge ever in absolute terms.