Sensex earns 480 points when RBI intervenes to calm the markets; Ingenious above 11,300

NEW DELHI: After seven consecutive sessions of losses, equity indexes rose sharply on Tuesday, as the Reserve Bank of India (RBI) said it is closely monitoring the global and domestic situation regarding the impact of the deadly coronavirus. The rising hopes of coordinated political action to mitigate the broader consequences for economic activity also increased market sentiment.

Reference point BSE sensex increased 479.68 points or 1.26 percent to close at 38,623.70. Meanwhile, the broader NIF NSE set 170.55 points or 1.53 percent higher at 11,303.30.

The main winners in the BSE index of 30 shares include Sun Pharma, Tata Steel, ONGC, Ultracemco, NTPC, Power Grid and Hero MotoCorp with an increase in their shares of up to 6.64 percent. 28 of 30 actions ended in green.

ITC and HDFC Bank were the only losers with a drop in their shares of up to 0.77 percent.

IN NSE, all subscripts ended in green with Nifty Metal and Pharma rising to 5.60 percent.

The RBI said it is closely monitoring the impact of the deadly coronavirus and is ready to take the necessary measures to ensure the orderly functioning of financial markets.

The Reserve Bank of India is monitoring national and international developments closely and continuously and is ready to take appropriate measures to ensure the orderly operation of financial markets, maintain market confidence and preserve financial stability, he said.

According to traders, national benchmarks followed global actions that were recovered in the hope that global policymakers will stimulate the impact of the coronavirus on their economies.

Although the number of cases outside of China is increasing and creating waves in world markets, markets are assuming a great possibility that the central bank's coordinated action and liquidity infusion can help address the economic consequences of the virus, Mayuresh said. Joshi, chief of capital William O'Neil&Co's investigation in India told the Reuters news agency.

The finance ministers and the heads of the central banks of the G7 countries will hold conversations during the day to discuss ways to coordinate their responses to cushion the impact of the epidemic on the global economy.

In addition, on a net basis, foreign institutional investors (FPI) sold shares worth Rs 1,354.72 crore, while domestic institutional investors bought shares worth Rs 1,138.74 crore on Monday, they showed the data available in the stock exchanges.

(With agency contributions)