Stung by coronavirus, markets log biggest yearly loss in FY20 since 2009

Topics Markets | Rupee

Illustration: Ajay Mohanty
The domestic markets have logged their biggest yearly loss since 2008-09 — when they had declined 36 per cent on account of the global financial crisis — with the Nifty dropping 26 per cent in FY20. The mid- and small-cap indices, focused on the broader market, declined as much as 45 per cent.

The rupee weakened over 8 per cent against the US dollar during the year, amid Rs 55,000-crore sell-off in March.

Unlike 2008-09, when the losses were spread across many months, the bulk of the market fall in FY20 took place in March because of the spread of the coronavirus pandemic and the subsequent halt in economic activity.

A slump in demand saw Brent crude prices drop 66 per cent to an 18-year low to below $22 a barrel during the year. The domestic equities underperformed major markets like the US, China, South Korea, and Japan.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel