As expected, the US markets slipped in trade on Monday but a surprise move by the US Federal Reserve uplifted the investors sentiment in Asia. Stock markets are rallying in today's trade in Asia after U.S. Federal Reserve announced unlimited bond purchases to prevent an economic depression. Furthermore, the SGX Nifty at 7 am was trading 336 points higher at 7,816, indicating a tepid but positive start for the Sensex and Nifty50.
1. Asia: Stocks rallied on Tuesday as the U.S. Federal Reserve's sweeping pledge to spend whatever it took to stabilise the financial system eased debt market pressures, even if it could not offset the immediate economic hit of the coronavirus. MSCI's broadest index of Asia-Pacific shares outside Japan added 1.2 percent, though that followed a drop of almost 6 percent on Monday. South Korea and Australia also recouped a little of their recent losses. (Representative Image)
2. US: Wall Street's slide deepened on Monday as the rapidly spreading coronavirus forced more U.S. states into lockdown, overshadowing unprecedented moves by the U.S. Federal Reserve to shore up credit across the economy. The Dow Jones Industrial Average dropped 3.12 percent to end at 18,576.04 points, while the S&P 500 lost 2.96 percent to 2,236.7. The Nasdaq Composite dropped 0.27 percent to 6,860.67, its overall decline cushioned by a 3.07 percent rise in Amazon.com. (Image Source: AP)
3. Market At Close On Monday: Indian shares post biggest single-day fall to end 13 percent lower on Monday as investors continued to fret over the impact of the rapidly spreading coronavirus outbreak on economic growth. The Sensex ended 3,935 points lower at 25,981 while the Nifty lost 1,135 points to settle at a 4-year low of 7,610. In the cash market, foreign institutional investors sold Rs 2,989 crore while the domestic institutional investors bought Rs 1,082 crore. (Image Source: Reuters)
4. Crude Oil: U.S. crude oil futures climbed nearly 3 percent on Tuesday in light trading as the Trump administration launched an effort to work with Saudi Arabia to stabilise oil prices. West Texas Intermediate (WTI) crude futures for May delivery rose $0.67, or 2.9 percent, to $24.03 as of 2353 GMT, adding to gains on Monday. Brent futures for May delivery rose 52 cents, or 1.9 percent, to $27.55 as of 0015 GMT. (Image Source: Reuters)
5. Rupee Close: The Indian rupee slipped 110 paise in today's session and ended near the record low at 76.29 per dollar. It touched a record low of 76.32 per dollar amid huge selling seen in the domestic equity market as Sensex hit lower circuit in the early trade.
It opened at 76.02 versus Friday's close of 75.19. However, it fell Rs 5 in almost over 2 months period. (Image Source: Reuters)
6. Lok Sabha Passes Finance Bill 2020: The Union government said it was an "extraordinary situation", a reference to the coronavirus pandemic, as finance minister Nirmala Sitharaman tabled the bill for passage. The lower house of the Parliament passed the Finance Bill 2020 with amendments on Monday without any discussions after all political parties collectively agreed to clear the Modi government’s financial and tax proposals for the next financial year, FY21. The Finance Bill 2020 was passed by voice vote. (Image Source: Reuters)
7. RBI To Infuse Via Repos: The Reserve Bank of India stepped in to calm markets once again by bringing forward its open market purchase of bonds worth up to 150 billion rupees while also announcing a fresh round of fund infusion via variable-rate repos on Monday. The RBI will now buy four bonds maturing between 2022 to 2028 bonds for a total of 150 billion rupees on March 26, bringing forward the auction date from March 30. The RBI said on a review of the current liquidity and financial conditions, they have decided to advance the second trance of the OMO purchase. (Image Source: Reuters)
8. Sebi Tweaks Framework Stock Brokers: Markets regulator Sebi on Monday came up with new guidelines for stock brokers with regard to entering risk-reduction mode, as part of efforts to bolster their risk management capabilities. "... stock brokers shall mandatorily put in risk-reduction mode when 90 perent of the stock broker's collateral available for adjustment against margins gets utilised on account of trades that fall under the margining system," Sebi said. (Image Source: Reuters)
9. Government Raises Special Excise Duty Cap On Petrol, Diesel: The government, as part of the amendments brought to the Finance Bill, has increased the cap on special additional excise duty from Rs 10 to Rs 18 for petrol and from Rs 4 to Rs 12 for diesel.
The move will give the government more flexibility when it comes to raising special additional excise duty. (Image Source: Reuters)
10. IMF Says Global Recession Imminent: Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said at a conference call of G20 nations on March 23 that the world would face a recession that could be as bad as the 2008 economic meltdown, or even worse. According to an IMF statement, she emphasised : “First, the outlook for global growth: for 2020 it is negative—a recession at least as bad as during the global financial crisis or worse. But we expect recovery in 2021. To get there, it is paramount to prioritize containment and strengthen health systems—everywhere. The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be.' (Image Source: IANS)