India Stock Market Plunges Record 13% in One Day Amid COVID Surge

BSE Sensex Index Closes at 25,981.24... Drops 10% Since Market Open
Fear of COVID-19 Spread Increases... "130 Million Could Be Infected"

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The Indian stock market closed with a 13% plunge in a single day, marking the largest one-day drop since statistics began in 1979. This appears to be due to growing fears of an economic slowdown amid the spread of the novel coronavirus infection (COVID-19).

According to Bloomberg on the 23rd (local time), the Indian BSE Sensex index closed at 25,981.24, down 13% from the previous trading day. This was the largest drop since 1979. The S&P BSE100 index also closed at 7,683.09, down 12.96% from the previous session. The CNX Nifty index similarly fell 12.98% to 7,610.25 at the same time. Shortly after the market opened that morning, the 'circuit breaker' was triggered temporarily to halt trading when the index dropped 10%. This contrasts sharply with the previous session's close, which rose over 5% on expectations of global economic stimulus measures.

As COVID-19 rapidly spreads worldwide, Asian stock markets including India’s are also shaken. The Indian government decided to lock down more than 80 major areas, including New Delhi, until the 31st. Bloomberg predicted that such measures will further worsen the Indian economy, which had already begun to slow to its lowest level in 11 years.

Meanwhile, the number of confirmed COVID-19 cases in India was only in the dozens earlier this month, but as of the morning of the 23rd, 390 people tested positive. Dr. Jacob John, former head of the Advanced Virology Research Centre under the Indian Council of Medical Research (ICMR), warned that "up to 10% of India's 1.3 billion population could become infected with COVID-19."

This content was produced with the assistance of AI translation services.