Sensex skates at the expiration of F&O
MUMBAI: Markets resumed their downward spiral on Thursday when the outbreak lessened appetite for risk amid the expiration of January derivative contracts. After balancing more than 550, the 30 shared BSE sensex 285 points, or 0.7%, were settled at 40,914. Similarly, the broader NSE Nifty closed 94 points, or 0.8%, at 12,036. The RIL heavyweight index was the biggest loser in the sensex package, falling almost 3%.
According to analysts, benchmarks became highly volatile before the expiration of futures and options contracts (F&O) in January. During the afternoon session, the markets continued to quote downwards led by the sale of large-cap stocks, which added to the already scary feeling before the Budget, they said.
In addition, the weakness in other Asian resources such as the growing concern about the impact of China's coronavirus on the world economy also affected internal sentiment, operators said. “The fear of the economic slowdown as the coronavirus spreads to other nations has diminished the mood of investors worldwide. A large number of results announced so far failed to provide an image of the economic recovery with disappointing banks due to the weak quality of assets that triggered the profit reserve, said Vinod Nair, head of research at Geojit Financial Services.