Indian markets are on a rebound hoping for global stimulus to fight coronavirus impact

Global cues helped Indian markets rebound from the sharp sell-off that spilled over from last week. Benchmark indices Sensex, gained 1.32% and the Nifty clocked 1.4%, at open on Tuesday (March 3).

The SGX Nifty on the Singapore exchange had indicated a positive start as it was 22 points, or 0.2% at 09:99 am (IST). The gains on the Indian bourses reflect the hopes of an economic stimulus in different countries to fight the impact of the coronavirus epidemic.

The Bank of England (BOE) amid economic fears said that it is working with the United Kingdom and international authorities to “ensure all necessary steps are taken to protect financial and monetary stability.”

Haruhiko Kuroda, governor of the Bank of Japan in a statement said, BOJ will “strive to provide ample liquidity and ensure stability in financial markets.”

Wall Street too, which had marked its biggest weekly decline since the 2008 financial crisis last week, saw a sharp 1,300-point (over 5%) surge in the Dow Jones Industrial Average on Monday. This was the strongest one-day gain in the US index since March 2009. The S&P 500 (up 4.6%) and the Nasdaq (up almost 5%) clocked their best trading day since December 2018.

China, despite being the centre of coronavirus outbreak, saw the market recovering expecting policymakers to avert a protracted economic crisis by pumping in more money into the system. The Shanghai Composite index gained 1.36% and the Hang Seng index in Hong Kong rose 0.6% at 8:15 (IST). Japanese trader Nikkei 225 rose by 0.95% yesterday at the closing time in Tokyo.