Mumbai: Equity benchmark indices on Thursday (January 30) closed in the red after witnessing bounce back in the previous session. The Sensex was down 284.84 points at 40913.82, while the broader Nifty also slipped 93.70 points at 12035.80. Among major gainers on the Nifty were Bajaj Auto, Power Grid, ICICI Bank, NTPC and Eicher Motors, while Yes Bank, Reliance Industries, Bajaj Finserv, Wipro and Hindalco were among major losers.
About 817 shares advanced, and 1591 shares declined, while 159 shares remain unchanged.
In the afternoon session today, the Sensex and Nifty continued to trade on a weak note. The Sensex dropped to 40,857, down 340 points or 0.83 per cent lower, while the Nifty dropped 111 points or 0.92 per cent to 12,018.
During early hours on Thursday, equity benchmark indices were on a downswing as concerns over the spread of coronavirus from China sent investors heading for safer bets. At 10:15 am, the BSE S&P Sensex was down by 235 points to 40,963 while the Nifty 50 dipped by 67 points at 12,063. All sectoral indices at the National Stock Exchange were in the red except for Nifty auto, which moved up by 0.46 per cent.
Meanwhile, stocks across the world tumbled today as the death toll from a virus spreading in China reached 170, forcing airlines to cut flights and stores to close as the potential economic hit from the outbreak came into focus.
MSCI world equity index, which tracks shares in 49 countries, fell 0.5% as European shares followed Asian indexes into the red, stoking demand for the perceived security of safe-haven assets from bonds to gold.
Europe`s broad STOXX 600 fell 0.9% in early trade, with indexes in Frankfurt, Paris, and London lost between 0.7%-1.3%.
Adding to the gloom, disappointing earnings and trading updates weighed further on blue-chip stocks. Royal Dutch Shell fell 4.8% after fourth-quarter profit halved to its lowest in more than three years.
US stock futures pointed to a negative open on Wall Street. US 10-year Treasuries also fell 3 basis points to 1.5600%, their lowest since October. The yield curve - as measured by the gap between 10-year and three-month note and a closely watched indicator of looming recession - fell again into negative territory.
Earlier, MSCI`s broadest index of Asia-Pacific shares outside Japan fell 2.1% to a seven-week low and has now dropped for six straight sessions. Indexes in Japan and Hong Kong fell 1.7% and 2.6% respectively. Taiwan`s benchmark index slumped 5.7% in its first session since the Lunar New Year break.
Federal Reserve Chairman Jerome Powell acknowledged on Wednesday the risks from any slowdown in the Chinese economy but said it was too early to judge the impact on the United States.
The Fed held interest rates steady on Wednesday at its first policy meeting of the year, with Powell pointing to continued moderate economic growth and a "strong" job market.
In Europe, the pound hovered around a one-week low hit on Wednesday ahead of Bank of England Governor Mark Carney`s final policy vote, where the central bank appears close to cutting rates for the first time in more than three years.
Financial markets are pricing in a 45% chance that the BOE would cut rates to 0.5% from 0.75%. The Chinese yuan reversed Wednesday`s gains to fall 0.4% to its lowest level since Dec. 30., breaking through the key level of 7 against the dollar. The Australian dollar and the kiwi dollar both lost 0.3%.
The Japanese yen rose 0.2% against the dollar, while the Swiss franc, also seen as a safe haven, also gained. The dollar against a basket of six major currencies was flat.
Oil prices, a barometer of the expected impact of the virus on the world`s economy, resumed their slide. Brent was down 95 cents, or 1.8%, at $58.71 a barrel shortly after 0800 GMT and has dropped 10% since Jan 20.
(With Agency Inputs)
