Sensex falls 285 pts as virus worries sap risk appetite

INDEX HEAVYWEIGHT RELIANCE INDUSTRIES WAS THE BIGGEST LOSER IN THE SENSEX PACK, FALLING 2.62%

MUMBAI: Equities resumed their downward spiral on Thursday as concerns over the China coronavirus outbreak sapped risk appetite amid expiry of January derivatives contracts.

India on Thursday reported its first case of the novel coronavirus, with a student testing positive in Kerala.

After swinging over 550 points during the day, the 30-share BSE Sensex settled 284.84 points, or 0.69%, lower at 40,913.82. It hit an intra-day low of 40,829.91 and a high of 41,380.14.

Likewise, the broader NSE Nifty closed 93.70 points, or 0.77%, down at 12,035.80.

Index heavyweight Reliance Industries Ltd (RIL) was the biggest loser in the Sensex pack, falling 2.62%, followed by Nestle India, Indusind Bank, Ultratech Cement, Mahindra and Mahindra and State Bank of India.

According to analysts, benchmark indices turned highly volatile ahead of the expiry of January futures and options (F&O) contracts.

During afternoon session, markets continued to trade lower led by selling in large-cap stocks which added to the already skittish sentiment ahead of the Union budget, they said.

“Fears of economic slowdown as the coronavirus spreads to other nations has dampened the mood of investors across the globe. A slew of results announced so far failed to provide a picture of economic revival with banks disappointing due to weak asset quality that triggered profit booking. With expectations high, the market to stay focused on the budget for further green shoots in the economy,” said Vinod Nair, head of research, Geojit Financial Services.