Indian shares collapsed in the opening trade after the Nifty hit a 10 percent lower circuit–a fall of more than 1,000 points– as the bears tightened grip over Dalal Street on March 13 after an overnight steep correction of up to 10 percent in US benchmark indices amid coronavirus panic.
After trading was stopped for 45 minutes, markets reopened with stability and recouped losses to return in the green in late morning deals. At the time of writing this copy, the benchmark indices were trading at the day’s high.
The BSE Sensex was up 1,501.49 points, or 4.58 percent, at 34,279.63 after falling more than 3,000 points on opening. The Nifty was trading 430.15 points, or 4.49 percent, higher at 10,020.30 at 1315 hours.
Experts say the market started compounding the fall very quickly on the news available across media segments, but considering the fall of more than 30 percent from record highs in two months, the recovery is on expected lines.
They, however, are cautious on the market as coronavirus cases outside China continue to rise. Once these stabilise or positive news flow starts coming in, there could be a sharp recovery in the market, they say.
Global infections top 1.28 lakh and more than 4,600 people have died, though China, from where the outbreak began, has seen a sharp drop in new cases.
“The markets opened lower on the back of weak global cues by hitting lower circuit, thereafter bargain hunting has pulled up the index from lower levels. We believe the volatility will continue for another few days.
Currently, the market has made a bottom near 8,555 levels. This is a strong support for the Nifty 50 index from current levels,” Vikas Jain, Senior Research Analyst, Reliance Securities, told Moneycontrol.
According to him, there could be a time-wise correction and he expects the markets to trade in a broad range. “Investors should start picking quality midcap and largecap stocks from a long-term perspective,” he said.
Here are the 10 biggest single-day intraday falls seen by the Nifty50:
Here are top 10 biggest ever single-day intraday falls seen by the Nifty50:
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