A surge in coronavirus cases outside China triggered a selloff in global equity markets today and Indian markets were not spared either. Indian stock market benchmark Sensex today tanked over 800 points to 40,363.23, wiping out over ₹3 lakh crore of investors’ wealth. The broader Nifty50 index today lost over 2% to settle at 11,829. Reflecting the nervousness among investors, India VIX index , which is commonly known as fear gauge, jumped 25% to 17.21. The Nifty Bank index fell 1.5% today to 30,471 while Nifty Auto index slumped 3.5%. The metal index was the biggest loser, plunging about 5%.

For Nifty, 11,800 is the immediate downside support and if it is broken the index may test 11,600 zone on the downside, say analysts.

Here is what analysts say about today’s market selloff:

Ajit Mishra, VP – Research, Religare Broking Ltd.

“The Indian markets plunged today following jittery global cues amongst fear of deepening adverse economic impact of coronavirus. We expect the markets to be choppy in the near term as global sentiments continue to remain muted. In addition, F&O expiry could also induce some volatility during the week. On an optimistic note, any positive outcome from the US president’s India visit in terms of strategic partnership/trade deal could possibly cheer the Indian markets.”

Vinod Nair, Head of Research at Geojit Financial Services

“Demand for safe-haven assets spiked as fresh coronavirus cases in South Korea and Italy indicated that business impact could be higher than thought earlier. ”

Manav Chopra, CMT, Head Research – Equity, Indiabulls Ventures Ltd.

“Bears were on the top of the trade and hammered the markets hard. Bears are having tailwind as far as international cues are concerned. Market breadth was sharply negative. Near term, markets have strong momentum on the downside and recoveries are unlikely to sustain as and when they come. Traders should look to have a sell on rise approach. 11,800 is the immediate downside support which if broken Nifty is likely to test 11,600 zone on the downside.

Bank Nifty too was hammered on the downside. It was strong selling across. 30,250 is the immediate near term support for the index which if broken would further add to the pressure on the downside. Traders should have a sell on rise approach. Index is trading below all near-term key averages which suggest upward momentum is fractured.”

S Ranganathan, Head of Research at LKP Securities.