Indian stocks extend slump to lowest since 2017 amid virus fear

Bloomberg

India’s benchmark stock index slumped to its lowest since September 2017 after entering a bear market last week amid concern that the novel coronavirus outbreak may threaten the nation’s already fragile economy.
The S&P BSE Sensex fell 8% to 31,390.07 in Mumbai, with all 30 members declining, following a wild session last week, when the gauge swung to end 4% higher from a 10% slide that triggered a market-wide circuit breaker. The Nifty Index declined 7.6% on Monday.
India’s NSE Volatility Index, the stock market’s fear gauge, climbed to its highest since 2008, signalling market turbulence will likely persist. Policy makers have pledged to use their record $481 billion foreign-currency arsenal in a bid to stem the market rout, while the economy is expanding at its slowest pace in 11 years.
Indian stocks are “still far from a point where one can call a market bottom, particularly as uncertainties due to virus,
financial-market dysfunction and energy prices remain,” Credit Suisse equity strategists including Neelkanth Mishra wrote in a note. The trajectory of the Covid-19 outbreak
remains difficult to chart and incorporate in earnings, Citigroup analysts Surendra Goyal and Vijit Jain said.
All 19 sector indexes compiled by BSE Ltd slid, led by a gauge of metal companies.
Housing Development Finance Corp Ltd contributed the most to the index decline, decreasing 11% while IndusInd Bank Ltd had the largest drop, falling 18%.