India Nears Bear Market as Stocks Tumble With Global Peers
India Nears Bear Market as Stocks Tumble With Global Peers
(Bloomberg) -- Indian stocks resumed declines, with the main equity gauges nearing bear market territory, as the coronavirus-induced global rout in risk assets added to the nation’s economic growth troubles.
The S&P BSE Sensex tumbled almost 5% to 33,932.5 as of 9:25 a.m. in Mumbai, after eking out gains Wednesday. The index has declined 19% from its record close on Jan. 14, nearing the 20% threshold for a bear market. The NSE Nifty 50 Index dropped 4.5%.
India suspended most visas until April 15 in a bid to halt the spread of the virus. The move came as U.S. President Donald Trump suspended all travel from Europe, excluding the U.K., and the WHO urged governments to step up containment efforts as the number of worldwide cases topped 124,000 and deaths exceeded 4,600. India currently has 60 confirmed cases.
The risk-off sentiment has swept markets from Australia to Japan and Brazil to Italy into a bear market this month.
Earlier this week, the Sensex had its steepest two-day slide in more than 11 years, with a measure of volatility expectations spiking to its highest level since May 2014 on Monday. Foreigners have withdrawn $2.1 billion from local stocks this month, the most since August.
Strategist View
“India is tracking developed markets, and we are heading for the same amount of correction due to outflows from both international and domestic investors,” said Ashish Chaturmohta, head of technical and derivatives strategy at Sanctum Wealth Management Pvt. in Mumbai.
The Numbers
- All 19 sector indexes compiled by BSE Ltd. slid, led by a gauge of energy companies
- Oil and Natural Gas Corp. fell 9.1% to lead declines, while Reliance Industries Ltd. was the biggest drag, dropping 7.6%
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To contact the reporter on this story: Ishika Mookerjee in Singapore at imookerjee@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Ravil Shirodkar
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