Reversing early gains, Indian stock market index fell sharply today after two fresh coronavirus cases were reported in the country. The Sensex ended 153 points lower at 38,144 while Nifty settled 0.6% lower at 11,132. During the day, the Sensex traded swung around 1,300 points from day’s high of 39,083 to low of 37,785.
The rupee also extended losses against the US dollar today, falling to 72.36 at day’s low against the previous close of 72.17. Indicating the risk-off mood, gold prices surged today by ₹700 per 10 gram to ₹42,125 on MCX.
“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 5% while Tata Steel, ONGC, Bajaj Auto, and Hero MotoCorp were other major losers.
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. (With Agency Inputs)
