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nifty breaches 10,000 for the 1st time since march 2018; 5 factors weighing on market

Thursday, Mar 12 2020 10:38AM

Global Sell-off pushed Nifty50 below 10,000 levels on Thursday for the first time since March 2018 while the S&P BSE Sensex broke below 34,000. Nifty slips to the lowest level since October 2017, CNBC-TV18 data showed.

Sectorally, selling pressure was seen in metals, energy, infrastructure, oil & gas, and Realty down over 5 percent each.
The Nifty Mid-cap index falls to lowest level in 38 months while the NiftyBank breaches 25,000, trades at a 17-month low.

The Nifty50 enters bear market, down 20% from record high hit in January. The S&P BSE Sensex down 19.6% from record high hit in January 2020.

Crude oil prices remained under pressure after the US banned travel from Europe following a declaration that the coronavirus outbreak is now a pandemic. Brent crude was trading around $$34.76/bbl.

The Indian rupee slipped in the early trade on Thursday. It has opened lower by 61 paise at 74.25 per dollar versus previous close 73.64.We have collated a list of top five factors which could be weighing on markets:

Dow Jones confirms bear market:

Wall Street stocks plunged on Wednesday, with the Dow confirming a bear market for the first time since the financial crisis after the World Health Organization called the coronavirus outbreak a pandemic, said a Reuters report.

All three major U.S. stock averages ended the session sharply lower, with the benchmark S&P 500 and Nasdaq composite index both about 19 percent below their Feb. 19 record closing highs.

A bear market is confirmed when an index closes 20% or more below its most recent closing high.

Nikkei 225 declined 4.32 percent in morning trade while the Topix index fell 3.94 percent. South Korea’s Kospi also plummeted 4.99 percent.

Shares in Australia dropped, with the S&P/ASX 200 down 4.79%. Hong Kong’s Hang Seng index also fell 2.88 percent.WHO says COVID-19 is a pandemic:

Stating that it is concerned about its spread and severity, the World Health Organisation on March 11 said coronavirus 'can be characterised as a pandemic'.

"WHO has been assessing this outbreak around the clock and we are deeply concerned both by the alarming levels of spread and the severity, and by the alarming levels of inaction," Tedros Adhanom Ghebreyesus, the Director-General of WHO said in a media briefing.

"We have, therefore, made the assessment that COVID-19 can be characterized as a pandemic," he said.

Govt suspends all tourist visas until April 15

The government said on March 11 that it will suspend all tourist visas in a sweeping attempt to prevent the spread of coronavirus as cases across India continued to rise.

The advisory said anyone with a "compelling reason" to travel to the country could contact their nearest Indian mission, but it was not clear if the ban would include short-term business visas.

Trump suspends travel from Europe to the US; UK exempted

Under rising pressure to take action against the coronavirus outbreak, US President Donald Trump suspended travel from Europe to the United States, except for the UK, for 30 days starting on March 13.

"We are marshalling the full power of the federal government and the private sector to protect the American people," Trump said. "This is the most aggressive and comprehensive effort to confront a foreign virus in modern history," he said.
Oil slumps 6% as US bans travel from Europe

Oil prices slumped again on Thursday amid a broader market rout after the United States banned travel from Europe following a declaration that the coronavirus outbreak is now a pandemic, said a Reuters report.

Brent crude was trading around $33.67, having flipped in and out of positive territory before the U.S. announcement. The contract fell nearly 4 percent on Thursday.

Persistent selling by FIIs

Foreign institutional investors (FIIs) sold shares worth Rs 3,515.38 crore, provisional data available on the NSE showed. On a month-to-date basis, FIIs have pulled out more than Rs 20,000 cr from Indian equity markets.

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