Black Friday in the stock market | coronavirus impact on world slowdown?

Sensex fell 1448 points, the second-largest decline in history, the investor was hit

It was feared by economists abroad that the world will not suffer as much from the coronavirus as it will with its economic impact. This was proved to be true on Friday when the economy of all the major countries of the world was affected by coronavirus due to heavy losses in major stock markets of Asia, Europe and America. The Bombay Stock Exchange's (BSE) 30-share index suffered the second biggest fall in Sensex history. The Sensex lost 1448.37 points (about 3.64 per cent), while the National Stock Exchange (NSE) 50-share major index Nifty also lost 431.55 points (3.71 per cent). At the end of the trading day, the Sensex closed at 38297.29 and the Nifty closed at 11201.75. In both these markets, stock investors lost about Rs 11 lakh crore in a single day.

The Sensex had earlier recorded a fall of 1624.51 points on August 24, 2015. Friday's fall was such that investors in any sector did not get relief and even more worryingly, in the coming days, there will be no such assurance of recession, there is no one to assure that.

Most stock markets around the world, including the BSE Sensex and the NSE Nifty, suffered the biggest fall since the 2008 global economic downturn. Friday's condition is largely a sign of fear from other countries. After the coronavirus has reached European countries including the US, there is an increased likelihood of its global economy being affected. The US major index Dow Jones closed with the biggest drop since the 2008 global recession, while the Korean, Singapore, Japan and China stock markets also saw historical declines. Almost all the stock markets of Europe also fell. All these stock markets fell by 4 per cent in one-day trading.

Considering the impact of the coronavirus, many international agencies have started talking about a one per cent decline in the global growth rate estimate of 3.5 - 4 per cent for the current year 2020. The slowdown is said to have a huge impact on the services sector like tourism, hotels, along with the global supply chain in the manufacturing sector. Market watchers say that foreign institutional investors are already pulling out their investments and on Friday indicated that they could speed up the process of withdrawing the remaining investment. The Sensex has recorded a daily decline in the last 6 trading days.