Analysts at Jeffries say that government has the bandwidth to spend $18 billion to support economic activity, if the coronavirus epidemic deepens in spread. The government is expected to announce an economic package for sectors severely affected by the coronavirus, addressing fall in consumer demand and related shutdowns.
What markets fear is fear itself: Uncertainty is driving a sharp selloff across global markets, with European markets sharply lower as cases spread, and as a $2 trillion recovery plan for the US fails in the Senate. UK's FTSE, France's CAC and Germany's DAX are down over 4% on open. Hong Kong's HangSeng closed nearly 5% lower.
Details of companies announcing suspensions of operations due to coronavirus lockdowns can be found here.
The Managing Director of HDFC Bank noted that there is a difference between a financial crisis and a health crisis. But senior executives and analysts are calling for action from RBI and the Government to prevent widespread business failures.
Markets have continued to decline after reopening for trading. Finance stocks are top losers.
Market set to re-open at 10:57 am after the fall triggered an automatic stop in trading.
A planned $2 trillion bailout of the US economy failed to clear the Senate in a party line vote with Senate Democrats voting against it.
The CEO of IL&FS; Investment Managers has resigned.
Companies across sectors have announced shutdowns of their factories and retail stores in compliance with district lockdowns.
With coronavirus cases on the rise around the world, markets dropped sharply with finance stocks among the worst performers.The main gainers today are stocks involved in coronavirus treatments and diagnosis.
India VIX, the measure of volatility in the market, has jumped nearly 6% to trade at near record highs.
Sebi has increased margin requirements and capped derivatives exposure in a bid to curb volatility and short-selling in the equity markets.
Riding High:
Largecap and midcap gainer today include Indiabulls Housing Finance Ltd. (96.25, 6.00%).
Downers:
Largecap and midcap losers today include Cholamandalam Investment & Finance Company Ltd. (136.05, -29.60%), Max Financial Services Ltd. (288.55, -29.23%) and Mahindra & Mahindra Financial Services Ltd. (149.85, -28.64%).
BSE 500: highs, lows and moving averages
1 stock hit their 52 week highs, while 293 stocks were underachievers and hit their 52 week lows.
Stock touching their year highs included - Ipca Laboratories Ltd. (1367.70, -0.55%).
Stocks making new 52 weeks lows included - 3M India Ltd. (15887.25, -8.52%) and ACC Ltd. (998.45, -11.48%).
3 stocks climbed above their 200 day SMA including Cadila Healthcare Ltd. (280.35, -1.91%) and Thyrocare Technologies Ltd. (461.50, -8.78%). 40 stocks slipped below their 200 SMA including Rallis India Ltd. (149.70, -19.99%) and Metropolis Healthcare Ltd. (1247.55, -19.70%).
