Market Benchmark Index Sensex recovered towards the end of market hours to close over 1,300 points after suffering biggest one-day fall on Friday.
BSE Sensex rallied 1,325 points +4.04% at 34,103 while the broader Nifty 50 continued to to rally 433 points +4.52% at 10,023 during the closing session on Friday.
At 13.30 pm, Sensex rallied 1,511 points +4.61% at 32,289 while Nifty 50 crossed it 10,000 mark up by 427 points +4.45% at 10,017.
As the market hours began Investors remained nervous as equity indices crashed by 10 per cent but recovered quickly after the trading was halted for 45 minutes as the Nifty hit a lower circuit.
At 11:15 am, the BSE S&P Sensex was still down by 84 points or 0.26 per cent to 32,693 while the Nifty 50 slipped by 66 points at 9,524. The trading was halted for the 45 minutes as the Nifty hit a 10 per cent lower circuit.
Securities and Exchange Board of India (SEBI) stepped in quickly and said the fall in Indian indices has been significantly lower than the stock market in other countries.
Over the last few days, said SEBI, the Indian stock market has been moving in tandem with other global markets owing to concerns relating to COVID-19 pandemic, resultant fear of economic slowdown and recent fall in global crude prices.
Most sectoral indices at the National Stock Exchange were in the red. Meanwhile, global stock markets crashed with coronavirus panic selling hitting almost every asset class.
Gold and oil fell and once-safe sovereign bonds slumped as investors liquidated everything they could to cover losses. Japan's Nikkei dropped as far as 10 per cent and headed for its worst week since the 2008 financial crisis.
In South Korea, the Kospi fell by 7.7 per cent while Hong Kong's Hang Seng index was down by 5 per cent and China's Shanghai composite slumped by 3 per cent.
Overnight on Wall Street, the Dow Jones Industrial Average closed 2,353 lower at 21,201, the S&P 500 tanked 9.5 per cent and the Nasdaq Composite ended 9.4 per cent lower at 7,202.
On Wednesday, the World Health Organisation (WHO) declared coronavirus a global pandemic and US President Donald Trump announced a 30-day ban on travel from Europe to the United States over COVID-19.