Indian Stocks take a 7% Plunge and Hit a New Low Against the Dollar

On Thursday, the Indian Stocks plunged nearly 7% staying with its Asian peers as the coronavirus pandemic caused a worldwide panic. The level hit a near four-year low as the NSE Nifty 50 index slipped below the 8,000. On January 20, the Nifty is 36.8% off its all-time high hit.

The Indian rupee has now hit a new record low of 75.0100 against the dollar as a flight into cash. This begins the worries about tightening liquidity boosted demand for the world’s reserve currency.

The chief market strategist at Geojit Financial Services in Kochi said, “Nothing much has changed. Panic is the overriding emotion right now.”

With MSCI’s broadest index of Asia-Pacific shares outside Japan falling 5% to a four-year low the Global markers were ravaged. Even the policymakers in Europe were surprised which lead to the United States and Australia launching stimulus measures.

This virus that originated in China has quickly spread throughout the globe. The virus has now killed more than 8,000 people leaving the economic activity battered, which has led to the rise in fears of a global recession.

There were more than 130 cases reported in India alone, along with three reported deaths. This was reported as of Thursday.

Looking at the domestic trading, the Nifty bank index slipped nearly 8% while the Nifty Auto Index has plunged 6.5%. The biggest laggard is in the Nifty was Bharti Infratel Ltd, which has slumped 16%.

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