Markets Sensex adds 480 points

Sensex has longest losing streak this year, adding 480 points on Tuesday after major central banks across the globe indicated that they will ease lending rates in response to the coronavirus outbreak.

The Reserve Bank of India on Tuesday afternoon said that “it is ready to take appropriate actions to ensure the orderly functioning of financial markets”.

Further In a statement, the bank said that “The Reserve Bank of India is monitoring global and domestic developments closely and continuously and stands ready to take appropriate actions to ensure the orderly functioning of financial markets, maintain market confidence and preserve financial stability.”

Central banks across the world most notably the US Federal Reserve have indicated that they will take policy actions to counter the detrimental impact of the coronavirus outbreak on businesses and trade. The Sensex closed at 38,623.70, higher by 479.68 points or 1.26 per cent while the Nifty settled at 11,303.30, higher by 170.55 or 1.53 per cent.

Siddhartha Khemka of Motilal Oswal Financial Services said that “there was all-round participation in the market with both Nifty Midcap 100 and Nifty Smallcap 100 up 2 per cent and 1.5 per cent respectively”.

He also added that “All the sectors ended in green with metals and pharma being the biggest gainers with gains of more than 5 per cent. The fall was arrested today after the RBI said that it is closely monitoring global as well as domestic situations and is ready to take necessary action to ensure the orderly functioning of financial markets”.

Indian shares closed lower on Wednesday after the country`s health minister confirmed the number of coronavirus cases had risen sharply to 28, fuelling worries that economic activity may be affected further.More than 93,000 cases have been reported worldwide, and several thousand have died from the flu-like coronavirus, which emerged in the central Chinese city of Wuhan late last year and has since spread to more than 80 countries.