New Delhi:
Finance Minister Nirmala Sitharaman on Friday said the government and the Reserve Bank are closely monitoring the stock market, which is facing intense volatility amid mounting coronavirus fears.
Together with the RBI, the government is closely monitoring markets, she said on the situation arising out of a panic spread of coronavirus pandemic.
“Global markets have undergone severe volatility, and we are monitoring the situation. It is no consolation to say that stock markets in India and elsewhere have suffered. Globally there are serious repercussions being felt. We are conscious of the developments. Together with the RBI, we are monitoring and making sure where necessary, we take steps,” Sitharaman said at a post-Cabinet press conference.
“The interactions and engagement with the various sectors, through the concerned departments, is happening almost on a daily basis. We are trying to attend to the requirements of the affected industries, and to see where all the departments will have to make an intervention related to their sectors,” she said.
When asked if there was case for an interest rate cut by the MPC, the Finance Minister said: “The RBI Governor has said that he very clearly recognized that there is this development globally, and that he is open to need of the hour. I am sure he will take a call from his end.”
Chief Economic Advisor Krishnamurthy Subramanian said that following actions by various central banks, and given the inflation situation, there was a case for an interest rate cut. This comes ahead of the RBI’s next Monetary Policy Committee meeting, scheduled on April 1.
After being battered in the early session, the BSE Sensex spurted 1,325.34 points and the NSE Nifty rose 365.05 points to settle the day at 9,955.20.
Indian market saw its biggest intra-day selloff in early session, wiping nearly Rs 12 lakh crore off investor wealth in less than 20 minutes of opening trade.
As coronavirus-led recession fears triggered panic selling globally, both Sensex and Nifty plunged over 10 per cent in the opening session, hitting their lower circuit levels.
Stock exchanges halted trading for 45 minutes. Normal trading resumed at around 1030 hours.
The last circuit freeze happened in January 2008.