- Title: India's Nifty dives as Fed rate cut fails to calm coronavirus fears
- Date: 16th March 2020
- Summary: COMPUTER SCREEN SHOWING PRICES OF STOCKS
- Embargoed: 30th March 2020 06:49
- Keywords: Bombay Stock Exchange Fed rate India Indian shares Mumbai Nifty Sensex coronavirus
- Location: MUMBAI, MAHARASHTRA, INDIA
- City: MUMBAI, MAHARASHTRA, INDIA
- Country: India
- Topics: Economic Events
- Reuters ID: LVA002C5AVOLR
- Aspect Ratio: 16:9
- Story Text: Indian shares sank on Monday (March 16) as the U.S. Federal Reserve's emergency move to cut rates back to near zero and disappointing economic data out of China spooked investors about the impact of the coronavirus outbreak on global growth.
The surprise rate cut on Sunday (March 15) by the Fed and its measures to ensure liquidity in dollar lending ahead of a scheduled meeting that had been set for Tuesday (March 17) and Wednesday (March 18) sent U.S. stock index futures tumbling to their daily down limit.
The rupee, which fell to a record low of 74.508 against the dollar on Friday, was 0.44% weaker at 74.1725 by 0410 GMT.
Indian equities, which rebounded from a steep fall on Friday on hopes of coordinated stimulus measures to combat the impact of the virus, were kept in check on Monday by losses in financial stocks.
The NSE Nifty 50 index slid 5.2% to 9,442.95 in early trading, while the benchmark S&P BSE Sensex dropped 5.4% to 32,2547.79.
India's volatility index rose more than 12%.
Further spooking investors was data out of China that showed the country's industrial output contracted at the sharpest pace in 30 years in the first two month of the year due to the disruptions caused by the virus.
Lockdowns and travel bans spread across the globe over the weekend, affecting tens of millions of people. - Copyright Holder: ANI (India)
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