Fear of increasing coronavirus infection is causing concern in markets across the world. The Dow Jones saw a fall of 1,190.95 points. This is one day’s biggest drop in Dow Jones history.
The Dow Jones has lost 3,225.77 points this week, down 11.1%. As the US-China trade war softened, investors expected the global economy to return to the track quickly, but factories in China have been closed as Coronavirus infection has increased.
Production in many countries of the world has been severely affected due to supply disruptions from China. Investor sentiment is being severely affected by the spread of Coronavirus to countries other than China.
The S&P in the US market fell 4.4% due to the sell-off. This is its biggest decline since 2011. The S&P was at its highest level a week ago. The S&P has fallen below 12% in seven days. According to experts, if the stock falls further, it will reach the recession of October 2008.
The market fell sharply as soon as trading started on Friday. This led to a decrease in market capitalization of BSE by nearly 4 lakh crores. MCAP came down to 150 lakh crores. This is the sixth consecutive day when the market is witnessing a decline. Investors have lost about Rs 10 lakh crore in these six days.
BSE Sensex fell by more than 1,000 points as soon as the market opened on Friday. Tech Mahindra, Tata Motors, Bajaj Finance, Tata Steel, JSW Steel are seeing a decline in the Nifty.
The crude oil price fell by over 4 per cent in global markets. Traders fear that the Coronavirus is impacting crude oil demand. Brent crude oil for April delivery fell 4.2 per cent to $ 51.20 per barrel, while New York’s WTI (West Texas Intermediate) crude oil fell nearly 5 per cent to $ 46.31 for the month.
