New virus strain in UK batters global markets

The emergence of a virulent strain of coronavirus in the UK battered stocks worldwide, including India, on Monday as nations raced to shut air travel and reimpose travel restrictions, darkening the prospects of early recovery.

Indian stock benchmarks plunged 3% at the end of trading, the worst in Asia and the steepest single-day decline since May, as investors fretted over the possibility of fresh curbs squeezing economic activity.

During the day, the benchmark index BSE Sensex plunged as much as 4.34%, while the NSEs Nifty index shed 4.57%. The Sensex ended trading at 45,553.96, while the Nifty closed at 13,328.40, down 3.14%.

Markets in the rest of Asia-Pacific were mixed. Mainland Chinese stocks ended higher, with the Shanghai composite gaining 0.76% while Hong Kongs Hang Seng index declined 0.72%. The coronavirus situation in countries such as Japan and South Korea remained severe, weighing on investor sentiment.