The outbreak of the novel coronavirus has taken its toll on the stock market with Sensex crashing 1,100 points on Friday, February 28.
According to Economic Times, within 5 minutes of trading, domestic stocks wiped nearly ₹4 lakh crore of investor wealth as the market cap for the Bombay Stock Exchange (BSE) fell below the ₹150 lakh crore mark.
Domestic investors were mere spectators as the effect of the coronavirus was felt on US shores.
The record-wise plunge for US Dow Jones in overnight trade was the worst weekly fall for global markets since 2008.
At 9:50 AM, the BSE Sensex was trading 1,145.29 points or 2.88 per cent lower at 38,600. Moreover, the BSE market cap fell ₹3.77 lakh crore to ₹148 lakh crore.
This is the sixth day of consecutive slide for domestic stocks and the investors have lost ₹10 lakh crore so far.
More than 83,000 people have been affected by the coronavirus globally.
According to Reuters, about 10 countries have reported their first coronavirus case just 24 hours ago. This includes countries like Nigeria - the most populous country in Africa.
With global markets severely hit and facing a shortage of manpower, over 100 stocks hit their lower circuit limit by 9:30 AM on Friday and close to 200 stocks hit their fresh 52-week low for the day.
India Inc has also started seeing the impact of disruption in global trade following the coronavirus outbreak.
The luggage industry has been hit the most since it is majorly dependent on China for luggage & bag-packs.
Container Corporation of India said its volumes are negatively impacted by coronavirus while Allcargo Logistics said its management is not very clear about the impact it will have on their day-to-day functioning.
As the markets closed on Thursday, February 27, foreign portfolio investors (FPIs) sold domestic stocks to the tune of ₹3,127.36 crore.