Indian shares jump as the Fed scrambles to stabilise financial markets

By CIOReviewIndia Team | Tuesday, 24 March 2020, 13:01 IST

Indian shares jump as the Fed scrambles to stabilise financial markets

The country’s shares managed to make through gains today after one of the worst single-day decline on record.Since the sentiment improved after the Federal Reserve of US promised to spend as much as it is required to stabilize a financial system that is shook by the coronavirus pandemic.

The Nifty rose up to 5.6 per cent in early trade, however pared most of the gains to trade 0.55 per cent higher at 7,650.65 by 0424 GMT. Also, the Sensex was 0.37 per cent higher at 26,0771.41.

With an aim to support the US economy, the U.S. Federal Reserve on march 23, rolled out numerous set of measures which also includes the purchase and acquisition of corporate bonds. The Fed also has plans to expand its asset purchases by as much as possible to steady the financial markets.

Today, the E-Mini futures for the S & P 500 are up by 3 per cent. Also, Japan’s Nikkei rose to 6.2 per cent and MSCI’s broadest index of Asia-Pacific shares outside Japan leaped 4.2 per cent.

“The Fed boost has helped our markets but a general weakness still remains because we are in the early stages of assessing the impact of the virus,” said Anand James, chief market strategist at Geojit Financial Services in Kochi.

Indian stocks suffered their worst one – day rout in history yesterday and the rupee plunged to a new all-time low as several Indian states-imposed curfews to curb the spread of the virus, which made businesses shut down, disrupting daily life.

Today, IT services firm Infosys limited leaped over eight per cent in early trade and the Nifty IT index rose up to nearly 7 per cent.

However, Airline stocks were hit as the country has temporarily suspended all domestic flights for an indefinite period to restrain the spread of the virus. Shares in the parent of the country’s largest airline IndiGo tumble 8.5 per cent and SpiceJet slided nearly 5 per cent.

The country’s shares managed to make through gains today after one of the worst single-day decline on record.Since the sentiment improved after the Federal Reserve of US promised to spend as much as it is required to stabilize a financial system that is shook by the coronavirus pandemic.

The Nifty rose up to 5.6 per cent in early trade, however pared most of the gains to trade 0.55 per cent higher at 7,650.65 by 0424 GMT. Also, the Sensex was 0.37 per cent higher at 26,0771.41.

With an aim to support the US economy, the U.S. Federal Reserve on march 23, rolled out numerous set of measures which also includes the purchase and acquisition of corporate bonds. The Fed also has plans to expand its asset purchases by as much as possible to steady the financial markets.

Today, the E-Mini futures for the S & P 500 are up by 3 per cent. Also, Japan’s Nikkei rose to 6.2 per cent and MSCI’s broadest index of Asia-Pacific shares outside Japan leaped 4.2 per cent.

“The Fed boost has helped our markets but a general weakness still remains because we are in the early stages of assessing the impact of the virus,” said Anand James, chief market strategist at Geojit Financial Services in Kochi.

Indian stocks suffered their worst one – day rout in history yesterday and the rupee plunged to a new all-time low as several Indian states-imposed curfews to curb the spread of the virus, which made businesses shut down, disrupting daily life.

Today, IT services firm Infosys limited leaped over eight per cent in early trade and the Nifty IT index rose up to nearly 7 per cent.

However, Airline stocks were hit as the country has temporarily suspended all domestic flights for an indefinite period to restrain the spread of the virus. Shares in the parent of the country’s largest airline IndiGo tumble 8.5 per cent and SpiceJet slided nearly 5 per cent.

 

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