Market opens lower as coronavirus continues to spread; Nifty nears 9,500

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Mumbai: The US Federal Reserve has announced it would cut its target interest rate to near zero as part of the emergency action to support the US economy from the impact of the coronavirus pandemic. This has impacted the Indian stock market today. BSE Sensex was trading 2004.20 points down at 32,099.28 in morning session. Similarly, the NSE Nifty cracked 596.25 points to 9,358.95.

At 10:13 AM, BSE was trading at 32,471. Similarly, Nifty was trading at 9,516.

All Sensex components were trading in the red. IndusInd Bank was the top loser, tanking up to 12 per cent, followed by ICICI Bank, HDFC, Axis Bank, Titan, Tata Steel and Bajaj Finance.

On the currency front, the rupee is trading against the US dollar at 74.180.

In a statement, The Federal Open Market Committee (FOMC) said on Sunday it would cut its baseline interest rate range to 0 to 0.25 per cent and will increase its holdings of Treasury securities by at least USD 500 billion and its holdings of agency mortgage-backed securities by at least USD 200 billion. “Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 per cent,” the statement read.

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