Economic pandemic: Factors behind Sensex’s 2,900-point crash

BSE Sensex closed down 2,919 points at 32,778 while the NSE Nifty settled at 9,590

This is the biggest drop in history in absolute terms.

The stocks crash wiped out Rs 11.27 lakh crore of equity investors' wealth within hours.

Here is what caused the massive selloff:

Coronavirus: A pandemic

More than 1,24,000 cases across 100 countries with over 4,500 deaths

Travel bans

With the WHO declaration, the United States will suspend all passenger travel from Europe...

... except the UK for the next 30 days to stop the spread of coronavirus.

This threatens a smooth functioning of businesses, significantly related to US.

Markets panicked and sold their holdings pushing the US stocks in bear market territory.

Back home, India suspended all visas till April 15 to prevent the spread of coronavirus.

FII selling continues unabated

Foreign institutional investors (FIIs) have continued selling Indian stocks.

In March alone, they have withdrawn a net Rs 20,831 crore from domestic markets.

Since February 24, FIIs have been net sellers every day, as per NSE data.

Uncertainty in bond market

Uncertainty in the bond market due to  unfavourable proposal by the RBI has spooked investors.

India's financial system has come under serious stress due to the series of crisis.

Global market selling

Massive selloff in the major markets also dampened the mood on the Street.

MSCI's broadest index of Asia-Pacific shares outside Japan fell drastically

With the corona crisis, the global economy seems to be in distress