Concerns over the coronavirus outbreak has led to volatility in the stock market, with Sensex crashing over 1,400 points on Friday, 6th March, as the market opened.
Crash in the US stocks overnight has affected investors around the globe. The Indian rupee also tumbled to 73.90, its lowest since October 2018.
According to a report by Economic Times, Indian investors lost ₹4.42 lakh crore within 60 seconds into trading. Out of all the sectors, banking stocks suffered the worst hit. Shares of Yes Bank, which is already starved of capital, plunged 25%.
According to a statement by Edelweiss Securities, India's is getting hit at a time when its immunity is low.
While the first-order impact on India is contained (virus spread, supply chains, limited exports), its second-derivative effect could be greater: particularly given India is already at a low: growth, risk appetite and policy flexibility.
With 30 confirmed cases of COVID-19 in India, the fear of contracting the virus has hit the travel and tourism industry in India also very hard, apart from other sectors.