RBI Assures Appropriate Actions To Maintain Market Confidence Amid Coronavirus Scare

After seven consecutive sessions of fall in stock market indices, the Reserve Bank of India (RBI) on Tuesday issued a press release assuring that it is monitoring the situation closely and "stands ready to take appropriate actions to ensure orderly functioning of financial markets, maintain market confidence and preserve financial stability."

"Globally, financial markets have been experiencing considerable volatility, with the spread of the coronavirus triggering risk-off sentiments and flights to safe haven. Spillovers to financial markets in India have largely been contained. Growing hopes of coordinated policy action to mitigate a broader fallout to economic activity has boosted market sentiment today," the central bank said in a statement.

"The Reserve Bank of India is monitoring global and domestic developments closely and continuously and stands ready to take appropriate actions to ensure orderly functioning of financial markets, maintain market confidence and preserve financial stability," it added.

On Monday, Sensex and Nifty 50 fell sharply towards the end of the day's session after two confirmed cases of coronavirus infections were reported in India.

On Tuesday, indices are trading supported by hopes of measures from major central banks after reports that the finance ministers of G7 (Group of Seven) countries will hold a conference call on Tuesday to discuss the economic impact of the coronavirus outbreak. A BBC report said that it is likely that central banks will be involved in the call and the nations may make a joint statement acknowledging the potential impact of the virus spread and agreeing to work together.

Meanwhile, Prime Minister Narendra Modi on Tuesday said that he has had an "extensive review" regarding the "preparedness on the COVID-19 Novel Coronavirus".

"Had an extensive review regarding preparedness on the COVID-19 Novel Coronavirus. Different ministries & states are working together, from screening people arriving in India to providing prompt medical attention," he said in a tweet.