InvestorQ : Why did the Sensex fall by more than 900 points from the peak levels on March 02 after it started off so strong?
Niti Shenoi made post

Why did the Sensex fall by more than 900 points from the peak levels on March 02 after it started off so strong?

Answer
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Archita Jajjoo answered.
7 months ago


You are absolutely right that the Sensex shed more than 900 points from its peak in a volatile session. One reason was that the market failed to get any buying support once the short covering trades were completed. However, there was also a sense of panic after two people in India were diagnosed with Coronavirus affliction. In the last few days, the impact of the Coronavirus has been much more rampant outside China. India had been largely immune to the virus affliction but these latest cases spread a sense of panic in markets. Lower growth projections by Fitch and US yields touching a low of 1.10% also impacted the markets. In addition, the rupee weakening to 72.6 also played on the minds of traders.