In Focus by The Hindu Markets in shock: explaining the coronavirus-sparked stocks crash
The Nifty and Sensex lost all gains made over 2019, as the bourses witnessed an absolute bloodbath today. The Sensex dropped by over 2,000 and the Nifty, by over 500 points, as both suffered their biggest one-day fall in history. All told, some ₹5 trillion of investor wealth was lost. Aside from the massive global sell off amid fears that the coronavirus could cause an economic slowdown, the other factors to consider is the astounding drop in crude oil prices as Saudi Arabia has started a price war with Russia and continuing investor concern over the state of India's banking industry, exemplified by the Yes Bank crisis. How do all these factors combine to explain the stock market crisis today?
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Guest: K Bharat Kumar, Deputy Business Editor, The Hindu
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