Sensex, Nifty drop 1% as coronavirus spread beyond China unnerves investors

The broader NSE Nifty 50 index .NSEI was down 1.1 per cent at 11,949, as of 0350 GMT, while the benchmark S&P BSE Sensex .BSESN also dropped 1.1 per cent to 40,755.08.

Markets dropped on Monday, in line with global peers, as a spike in coronavirus cases beyond China renewed concerns surrounding the impact on global economy.

Global sentiment took a beating following reports that South Korea put the country on high alert after the number of infections hit more than 700 and deaths rose to seven. In Italy, officials said the number of cases jumped to above 150 from just three last week.

The broader NSE Nifty 50 index .NSEI was down 1.1 per cent at 11,949, as of 0350 GMT, while the benchmark S&P BSE Sensex .BSESN also dropped 1.1 per cent to 40,755.08.

Last week, Nifty 50 index shed 0.27 per cent, while the Sensex lost 0.21 per cent.

"Spread of the coronavirus is creating some apprehension in the minds of investors that this demon might not come under control soon," Deepak Jasani, head of retail research at HDFC Securities Ltd said, adding that markets will remain jittery until the virus comes under control.

Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.9 per cent.

Rattled by the virus outbreak, Australia's benchmark index fell below the key 7,000 level, while New Zealand .NZ50 was trading 1.3 per cent lower.

A surge of infections outside mainland China triggered steep falls in Asian share markets and Wall Street stock futures as investors fled to safe havens such as gold, which hit a seven-year high on Monday.

Back home, investors were looking at US President Donald Trump's visit to India on Monday after the leader said last week that both the countries were working on a major trade deal.

However, US officials clarified on Friday that Trump's visit will not result in even a limited trade deal as they have concerns over India's trade barriers.