As many as 29 stocks from the smallcap index, including SpiceJet, Delta Corp, Venky’s India, Shakti Pumps, Welspun Corp, Raymond, WPIL and Corporation Bank have seen their share price more than halved in the past month. Besides, a total of 209 stocks have fallen 40 per cent-50 per cent during this period.
As the coronavirus pandemic escalates and growth heads sharply lower against a backdrop of volatile markets
and growing credit stress, S&P Global's economists forecast a global recession this year. The agency on Wednesday lowered India's economic growth forecast to 5.2 per cent from 5.7 per cent for 2020.
The impact on the Indian economy could be significant if the virus continues to penetrate the country, which will have a longer lasting effect.
According to CARE Ratings survey, hospitality and tourism will face an adverse effect of the outbreak of coronavirus followed by airlines and auto and auto ancillary. A total of 80 per cent of the respondents opined that the non-performing asset (NPA) levels in the banking sector are going to increase owing to adversities in the economic activities owing to outbreak of COVID-19 across various countries, the agency said in recent report.
“Concerns over the fast spreading coronavirus across the globe will most likely continue to weigh on the markets.
Infact, its impact on the economy will be felt for a longer period though the exact nature and quantum of the same is difficult to estimate at current juncture. Thus volatility is likely to continue in near term with downward pressure on the markets,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said.