The central government on Monday confirmed two cases of deadly Covid-19 or Coronavirus which has already taken more than 3000 lives globally. Today morning, another case of Coronavirus was detected in Jaipur. Till the time of writing this report, the health officials in India have been put on high alert as six cases with 'high-viral' load were also detected in India. Prime Minister Narendra Modi took the stock of scare and assured 'no need to panic'. However, just as the news broke out of detection in India, the indices on Dalal Street went tumbling on the first two days of the week.
In the early trade on Monday, shares on Bombay Stock Exchange (BSE) jumped almost 2 per cent but after the two cases were detected in Telangana and New Delhi, the benchmark indices took plunge to end four-month low with the Sensex falling 153.27 points, to 38,144.02 while the Nifty closed at 11,132.75, down 69 points from its previous close.
In complete contrast, the equity indices on Tuesday rose sharply after the Reserve Bank of India (RBI) calmed down the market on the threat of Coronavirus. The central bank said that is closely monitoring global as well as domestic situation regarding the impact of deadly coronavirus. As per a report in the Times of India, multiple agencies stepping in to mitigate a broader fallout to economic activity also boosted market sentiment. Notably, after incurring seven consecutive session's equity indices on Tuesday rose sharply. The benchmark BSE Sensex jumped 479.68 points to close at 38,623.70. While the while National Stock Exchange (NSE) Nifty settled 170.55 points higher at 11,303.30.
The traders believe that the stock market in India followed global equities that gained on hopes of stimulus from global policymakers to control the impact of coronavirus on their respective economies. Mayuresh Joshi, head of equity research at William O'Neil & Co in India, "Even though the number of cases outside China is increasing and creating ripples in global markets, markets are assuming a huge possibility that coordinated central bank action and infusion of liquidity can help tackle the economic fallout of the virus."