Reversed early gains, Indian stock market index fell sharply today in late trade after two coronavirus cases were reported today in the country. Sensex was down about 400 points at 37,785, after hitting 39,083 at day’s high. The Nifty also turned lower to below 11,100.
“One positive case of COVID-19 has been detected in New Delhi, and one has been detected in Telangana. The person from Delhi has a travel history from Italy, while the one from Telangana has a travel history from Dubai. Further details of his travels are being ascertained,” the government said in a statement. “Both the patients are stable and being closely monitored,” it added.
The broader markets also gave up gains with both BSE midcap and smallcap indices down about 0.5% each.
Among the Sensex stocks, SBI fell nearly 6% while Tata Steel, Bajaj Auto, and Hero MotoCorp were down about 3% to 4%.
The India VIX index, commonly known as fear gauge, spiked 8% to 25.15, indicating the nervousness among investors.
Global markets rebounded today on hopes that global central banks will take actions to stabilize financial markets hit by worries of the impact of coronavirus on global economy.
Global central bankers from Japan to the UK pledged action aimed at stabilizing financial markets rattled by the spreading coronavirus as pressure builds on policy makers to safeguard their economies. In an emergency statement today, the Bank of Japan said it would “strive to provide ample liquidity and ensure stability in financial markets.”
The Bank of England followed up with a promise to “ensure all necessary steps are taken to protect financial and monetary stability.”
The commitments came after Federal Reserve Chairman Jerome Powell on Friday opened the door to cutting interest rates in the US to contain what he called the “evolving risks” to economic growth from the virus.
