InvestorQ : Why did the Nifty and the Sensex correct sharply on Thursday, 13 February 2020?
Juvina Maggie made post

Why did the Nifty and the Sensex correct sharply on Thursday, 13 February 2020?

Answer
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Angel dcosta answered.
7 months ago


The impact was twofold. Firstly, there was the spread of the Coronavirus pandemic in China, which claimed nearly 240 lives in a single day taking the total toll to 1400. That has again set off the panic buttons among the stocks markets in India and across the world. Investors prefer to stay light on risky assets. Secondly, the markets also reacted negatively to the flow of macro data that was announced on Wednesday. The CPI inflation came in sharply higher at 7.59% while the IIP growth again dipped into negative at (-0.30%). The disappointment was largely because this higher inflation essentially means that any rate cut in the next two policies almost looks unlikely and that is something that took the markets lower on Thursday. The big fall came in financials as they are likely to be hit by higher yields.