Sensex opens 150 points down, Nifty at 11,639; SBI, Dr Reddy's Lab, HUL, Nestle gain

Mumbai: Indian equity indices on Thursday (February 27) witnessed a negative start with the BSE Sensex down 134.41 points or 0.34% at 39754.55, while the broader Nifty down 39.50 points or 0.34% at 11,639. Major gainers on the Indices included SBI, Dr Reddy's Lab, HUL, Nestle, Hero MotoCorp, Eicher Motors, and Titan, while the top losers were Cipla, HCL Technologies, Infosys and TCS.

On Wednesday, equity indices closed deep into the red as the effects of coronavirus outbreak reverberated beyond China. The BSE S&P Sensex closed 392 points or 0.97 per cent lower at 39,889 while the Nifty 50 was down by 119 points to 11,679. All sectoral indices at the National Stock Exchange were in the negative zone with Nifty auto skidding by 2.15 per cent, realty by 1.67 per cent, metal by 1.63 per cent, pharma by 1.25 per cent.

Meanwhile, oil and Asian share markets extended losses today as the rapid global spread of the coronavirus kept investors on edge and seeking safety in gold and bonds. Rising fears of a pandemic, which US health authorities have warned is likely, had already wiped more than $3.6 trillion from global stock markets by Wednesday`s close.

China accounts for about 96% of cases and has instituted dire containment methods that have paralysed global supply chains. But most new infections are now being reported elsewhere, with news on Thursday of a jump in cases in South Korea accompanied by a warning that the virus may be spreading in California.

MSCI`s broadest index of Asia-Pacific shares outside Japan fell 0.5% and is down more than 4% for the week. Australia`s S&P/ASX 200 dropped 1% by lunchtime and has lost 7% this week. Japan`s Nikkei fell 1.7% to its lowest since October. The Hang Seng fell 1%. Gold climbed 0.7%.

US stock futures fell as far as 1% as he spoke, while European stock futures fell 2% in Asian trade, suggesting a possible catch-up drop in stocks there.

Fresh record-low yields on benchmark 10-year US Treasuries overnight, and the morning`s firm demand for dollars, yen and Swiss francs underscored the worried mood. The only bright spot, ironically, was China`s stock market, which steadied in relief that domestically, at least, the outbreak appears to be under control.

Notably, the latest wave of selling has already driven the China-sensitive Australian dollar to a new 11-year low and pushed US oil to a one-year trough, where they mostly sat on Thursday.

Last at 1.3088%, the yield on benchmark US 10-year Treasuries is less than one basis point firmer than an all-time low hit overnight. US crude made a fresh one-year low of $47.84 per barrel in Asian trade, while gold rose to $1,649.78 per ounce.

(With Agency Inputs)