Ready To Take Action, Says RBI As Coronavirus Spooks Financial Markets

With the novel coronavirus spooking markets across the globe, the Reserve Bank of India (RBI) on Tuesday said it is monitoring its impact and is ready to take necessary action to ensure orderly functioning of financial markets.

"Globally, financial markets have been experiencing considerable volatility, with the spread of the coronavirus triggering risk-off sentiments and flights to safe haven," the central bank noted in an official release, adding that spillovers to Indian financial markets "have largely been contained".

The RBI also took cognisance of the rebound in equity markets on Tuesday and attributed it to "growing hopes of coordinated policy action to mitigate a broader fallout to economic activity".

Meanwhile, the benchmark equity indices snapped a seven-day losing streak on Tuesday with the BSE and NSE gaining more than a per cent each during the day's trade. 

The currency markets however suffered yet another day of setback as the rupee fell under the psychological mark of 73 against the US dollar and was hurtling towards hitting a 52-week low in afternoon trade.