Worries over the economic impact of the coronavirus outbreak in China amid investor caution ahead of the Union budget saw the benchmark Sensex posting its second biggest fall in four months on Monday.

The 30-share index plummeted 458.07 points as concerns grew that the coronavirus could impact global economic growth. The deadly virus, which causes pneumonia-like illness, has so far killed 80 people and infected more than 2,700 others in China. It has also reportedly spread to other countries such as the US, France, Japan and Thailand.

This development comes as investors are in for an eventful week that will culminate in finance minister Nirmala Sitharaman presenting the Union budget on February 1. Market circles expect some tweaking in the long term capital gains tax rules and changes to the dividend distribution tax that would see it being taxable in the hands of the receiver.

The BSE gauge opened on a lower note at 41510.68 and struck a low of 41122.48 — a drop of over 490 points and later ended at 41155.12, a fall of 458.07 points or 1.10 per cent. Its fall was led by metal and banking stocks. Tata Steel was the top loser in the Sensex pace, dropping 4.31 per cent, followed by IndusInd Bank, HDFC Bank, SBI, PowerGrid and HDFC.

Similarly, the broader NSE Nifty settled 129.25 points, or 1.06 per cent, lower at 12,119. Sectorally, BSE metal index crashed 3.25 per cent, followed by telecom, power, finance, bankex and FMCG indices.

Rupee fall

Apprehensions over the impact of the virus also hurt the rupee which depreciated 11 paise to 71.43 against the dollar. The domestic unit has slipped 4 paise in the last three trading sessions.

At the inter-bank forex market on Monday, the rupee opened weaker at 71.51. The currency reclaimed some lost ground and settled for the day at 71.43 against the dollar.

Global markets spooked

New York: Stocks tumbled on Monday and oil prices fell, as the spread of a dangerous virus in China raised investor worries about the global economy. The sudden appearance of the virus has shattered a calm that had settled over financial markets in recent months. Nearly 3,000 people, mostly in China, have now contracted the disease. China extended the Lunar New Year holiday in an effort to limit travel and contain the outbreak. On Sunday, a fifth case of the disease was confirmed in the US.

Concerns about the virus were evident on Wall Street on Friday, with the shares of airlines and companies dependent on tourism from China particularly hard hit. On Monday, that selling accelerated. Major stock benchmarks in Europe were down more than 2 per cent. While many markets in Asia were closed for Lunar New Year, Tokyo’s Nikkei 225 index sank 2 per cent.

Trading in US stock futures indicated that shares on Wall Street would also open lower. Oil prices dropped. Brent crude slipped below $60 a barrel, its lowest since October.

Additional reporting by New York Times News Service