Mumbai, February 18: On Tuesday, the domestic bourses opened in the red due to the coronavirus scare and its impact on the global economy. The death toll due to COVID-19 has crossed 1,800 in China and it is still not under control. Several companies in India expressed their concern about a possible shortage if the situation in China doesn't improve in the next two months. Automakers have also warned of disruptions.
Sensex was trading at 40,503, down 250 points. Nifty on the other hand, went below the 12,000 mark and was at 11,970. Talking about the global markets, the Asian stocks also fell and Wall Street retreated from record highs on Tuesday after Apple Inc said it will not meet its revenue guidance for the March quarter as coronavirus outbreak slowed production and weakened demand in China. The company further warned of global “iPhone supply shortages” resulting from its Chinese factories being shut due to coronavirus outbreak. Moody's Revises India's GDP Forecast to 5.4 Per Cent in 2020.
Moody’s Investors Service on Monday cut its India GDP growth forecast for 2019 (calender) by 60 bps to 5 percent and by a sharper 120 bps to 5.4 percent for 2020, in what reflected a continuing trend of such downward revisions by prominent domestic and foreign agencies. Moody's said in its latest Global Macro Outlook report that "while the economy may well begin to recover in the current quarter, we expect any recovery to be slower than we had previously expected."