The Indian stock market tracking its global peers are trading deep into the red extending losses for the fourth straight session tracking losses in US markets overnight.
The United States told Americans on Tuesday to begin preparing for coronavirus to spread within the country as outbreaks in Iran, South Korea, and Italy escalated and fears that the epidemic would hurt global growth rattled markets, said a Reuters report.
Sensex is down 327.96 points or 0.81 percent at 39953.24, and the Nifty fell 101.70 points or 0.86 percent at 11696.20.
The effects of the coronavirus outbreak are likely to reverberate beyond China as most major economies in the region are expected to either slow down significantly, halt or shrink outright in the current quarter, Reuters polls found.
"The fear around and spread of coronavirus to other parts of the world is worrying. Hence we may see some more correction in Indian market," Raamdeo Agrawal, Joint MD and Co-Founder of Motilal Oswal Financial Services told CNBC-TV18.
All sectoral indices are trading in the red with metals and auto stocks falling the most, down over a percent each.
The top losers from the metal space included Jindal Steel & Power which shed over 5 percent followed by Hindalco Industries, Hindustan Copper, Hindustan Zinc, MOIL, NALCO, SAIL and Tata Steel.
Auto stocks are also trading in the red dragged by Tata Motors, Ashok Leyland, Motherson Sumi Systems, Maruti Suzuki, Exide Industries, Eicher Motors and Amara Raja Batteries.
India Cements share price zoomed 20 percent and is the top BSE smallcap gainer after Gopikishan S Damani, the brother of ace investor Radhakishan Damani, bought 2.75 percent stake in India Cements on February 25.
As per the bulk deals available on the National Stock Exchange, Gopikishan S Damani purchased 85,22,428 equity shares of the cement company at Rs 82.7 per share.
India VIX jumped 3.02 percent and was trading at 17.41 level.
The top gainers from Nifty are YES Bank, UltraTech Cement, Asian Paints, Power Grid and NTPC while the top losers included Tata Motors, GAIL India, Sun Pharma, Hindalco Industries and IndusInd Bank.
The most active stocks included HDFC, Reliance Industries, India Cements, Indiabulls Housing Finance and State Bank of India.
48 stocks hit new 52-week high on BSE including Navin Fluorine, Alkyl Amines, Sanofi India and Deepak Nitrite among others.
172 stocks hit 52-week low on BSE including Tata Power, Future Consumer, GAIL India, Hindalco Industries, Karur Vysya Bank, BHEL, NALCO, HPCL, Syndicate Bank, Bank of India, Larsen & Toubro and Canara Bank among others.
About 659 shares have advanced, 1256 shares declined, and 96 shares are unchanged.Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.