Stock Markets Recover After Hitting Lower Circuit, SEBI Says Fall Lower Than Other Markets
Indian stock market is showing some recovery after hitting lower circuits and thus a halt in trading for 45 minutes during early trade on Friday. At 11.09am, the NSE Nifty was up 39 points at 9,629while the BSE Sensex was up by 156 points at 39,934.
On Friday, the Nifty opened at its three-year low level. However, within minutes the Nifty 50 benchmark breached 8800 level, last seen in February 2017, while S&P BSE Sensex tumbled more than 3000 points. This resulted in circuit breakers and trading was halted for 45 minutes. Nifty 50 had hit a low of 8555.15, while the 30-share Sensex hit a low of 29388.9 earlier in the day.
When the trading resumed, both the benchmark indices displayed remarkable recovery.
Meanwhile in a statement, market regulator Security and Exchange Board of India (SEBI) has said that over the last few days the Indian stock market has been moving in tandem with other global markets owing to concerns relating to COVID-19 pandemic, resultant fear of economic slowdown, and recent fall in global crude prices.
"As can be seen from the following table giving a comparative market movement of global indices, it indicates that the fall in the Indian indices has been significantly lower than the stock market in other countries," SEBI says.
Separately, the US stocks extended losses on Thursday with the Dow plunging more than 2,300 points, or about 10%, at the close amid coronavirus fears. This proved to be worst trading session for the Dow since 1987 crash.
The Dow Jones Industrial Average fell 2,352.60 points, or 9.99%, to 21,200.62. The 30-stock index had its biggest one-day percentage drop since the 1987 Black Monday market crash, when it collapsed by more than 22%, Xinhua reported.
The S&P 500 decreased 260.74 points, or 9.51% to end at 2,480.64. The Nasdaq Composite Index shed 750.25 points, or 9.43% to 7,201.80.
The S&P 500 declined 7% shortly after Thursday's opening bell, triggering a key circuit breaker that halted trading for 15 minutes. It was Wall Street's second 15-minute halt this week.