Plus   Neg

Sensex, Nifty Seeking Rebound After Selloff

Indian shares look set to open higher on Tuesday, mirroring firm Asian markets and recovery in U.S. stock futures after the U.S. Federal Reserve launched unlimited bond buying and promised other steps to support the world's largest economy.

Closer home, thirty states and Union territories with a total of 548 districts declared a lockdown as the count of coronavirus cases in India stood close to 500.

The trajectory of the virus would be determined by how aggressive and sustained the action of highly populous countries like India was in dealing with the outbreak, Mike Ryan, WHO emergencies program director, said in a press conference at the organization's headquarters in Geneva, Switzerland.

Benchmark indexes Sensex and Nifty plunged around 13 percent to suffer their biggest single-day fall ever on Monday while the rupee slipped 110 paise to end near the record low at 76.29 per dollar.

Asian markets advanced, with benchmark indexes in New Zealand, South Korea and Japan climbing 6-7 percent, despite both Morgan Stanley and Goldman Sachs Group Inc. economists saying the coronavirus will inflict greater economic pain than they previously thought. Globally, more than 360,000 people have been infected by the respiratory virus.

The coronavirus pandemic will cause a global recession in 2020 that could be worse than the one triggered by the global financial crisis of 2008-2009, but world economic output should recover in 2021, the International Monetary Fund said.

Gold rose more than 1 percent as the dollar snapped a ten-day rally. Oil extended overnight gains after the Fed promised aggressive asset purchases to support markets.

U.S. stocks ended sharply lower overnight as confirmed coronavirus cases in the U.S. jumped above 40,000 and a massive fiscal stimulus bill failed to clear a procedural hurdle in the Senate for the second straight day.

President Donald Trump praised Fed Chair Jerome Powell after the central bank said it would purchase an unlimited number of Treasury bonds and mortgage-backed securities to support smooth market functioning.

The Dow Jones Industrial Average tumbled 3 percent and the S&P 500 plunged 2.9 percent to hit fresh three-year closing lows, while the tech-heavy Nasdaq Composite eased 0.3 percent to end at its lowest level in over a year.

European markets fell on Monday as countries around the world continued to wage battle to contain the spread of COVID-19. The pan European Stoxx 600 gave up 4.3 percent. The German DAX lost 2.1 percent, France's CAC 40 index declined 3.3 percent and the U.K.'s FTSE 100 shed 3.8 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT