Equity benchmark Sensex plunged over 1,100 points in the opening session on Monday tracking losses in global equities as unabated spike in COVID-19 cases across the world has hammered economic growth, sending the world into an economic recession.
The International Monetary Fund (IMF) has said the world is in the face of a devastating impact due to the coronavirus pandemic and has clearly entered a recession.
After hitting a low of 28,708.83, the 30-share BSE barometer was trading 855.82 points or 2.87% lower at 28,959.77.
Similarly, the NSE Nifty fell 245.30 points, or 2.83%, to 8,414.95.
Bajaj Finance was the top laggard in the Sensex pack, tanking up to 8 per cent, followed by M&M, Tata Steel, Bajaj Auto, ONGC, HDFC Bank and Kotak Bank. On the other hand, TCS, Tech Mahindra, HUL, Axis Bank and ITC were the top gainers.
In the previous session, the 30-share BSE barometer ended 131.18 points or 0.44% lower at 29,815.59, while the broad-based Nifty closed 18.80 points, or 0.22%, higher at 8,660.25.
Foreign institutional investors (FIIs) turned net buyers in the capital market, as they purchased equity shares worth Rs 355.78 crore on Friday, according to provisional exchange data.
According to traders, investors across the globe are jittery over the rising number of COVID-19 cases and the economic fallout of the worldwide lockdowns.
The IMF on Friday said it has reassessed the prospects for growth for 2020 and 2021.
It is now clear that we have entered a recession as bad or worse than in 2009. We do project recovery in 2021," IMF Managing Director Kristalina Georgieva stated.
Analysts said the stimulus package announced by the Indian government and RBI will have limited effect, until the actual impact of the contagion is known - both economically and with the number of infections.
On the global front, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly lower.
Meanwhile, the Indian rupee depreciated 28 paise to 75.18 against the US dollar in morning trade.
Brent crude futures, the global oil benchmark, fell 4.44% to USD 26.71 per barrel.
The number of COVID-19 cases in India surged past 1,000 over the weekend, according to health ministry log.
Deaths around the world linked to the pandemic crossed 30,000 over the weekend.