Indian stock market continues to bleed red to touch 3-year low

Investors have started factoring in new accumulation of non-performing assets due to adverse impact of coronavirus

MUMBAI: Indian stock market continued to bleed red tracking the global equity market as relentless selling continued unabated on Wednesday with benchmark indices touching a three-year low.

Sensex and Nifty closed at 28,869.51 points and 8,468.80 points, down 1483.05 points or 4.85 per cent and 498.25 points or 5.6 per cent, respectively over the previous close.

"The global mayhem combined with rising coronavirus cases in India triggered the initial fall. Markets are not showing any sign of slowdown despite the sharp correction in the benchmark and stocks across the board and, the pressure in the banking space has raised fresh concerns, which might cascade in the following sessions too," said Ajit Mishra, VP - Research, Religare Broking, a domestic brokerage house.



Investors have started factoring in the new accumulation of non-performing assets due to adverse impact of coronavirus on the Indian economy led by continuous foreign fund outflow that continue to dent the sentiments, said Sachin Gupta, analyst with Choice Broking, another domestic stock brokerage house.

Overall, markets refuse to settle down and the bearish sentiment is expected to continue as individual stock continues to remain in panic mode and stock brokerage housed maintained their advice to the investors to avoid bottom fishing.

India rupee gained marginally by 0.01 per cent trading at 74.26 to the US dollar. "Any recovery is likely to be short lived wherein rupee can test levels of around 73.80-73.50.

The larger trend continues to be weak for the domestic currency, given the economic blow from the coronavirus outbreak," said Sugandha Sachdeva, VP-Metals, Energy & Currency Research, Religare Broking.