Indian stocks fall on reports of new coronavirus cases

Bloomberg

Indian stocks declined, with the benchmark headed for its lowest level in more than four months, after the health ministry reported new novel coronavirus cases.
The S&P BSE Sensex dropped 1.6% to 37,996.89 in Mumbai on Wednesday after earlier swinging between gains and losses. The index rebounded on March 3, snapping the worst seven-day rout in almost five years that took it below a technical indicator that some investors read as a signal to buy stocks. The NSE Nifty 50 Index also declined 1.6% on Wednesday.
Fifteen Italian tourists and their Indian driver tested positive for the virus, taking total infections in the country to 28, health minister Harsh Vardhan said. Globally, infections rose above 93,000, with the death toll rising to 3,201.
India’s central bank said it’s ready to shield the economy from the effects of the virus that’s disrupting global supply chains. With outbreaks in a slew of countries, the Federal Reserve cut rates in a bid to boost sentiment. The India NSE Volatility Index climbed and was at a nine-month high.
“The US Fed action is more to boost sentiment,” said Anita Gandhi, Mumbai-based investment adviser at Arihant Capital Markets. “We will have to watch if the rate cut drives foreign investors into emerging markets or the risk-off sentiment persists.”
“Policy action like the unexpected 50 basis point Fed rate cut may only help prevent financial turbulence, not drive economic revival,” Credit Suisse Group AG’s equity strategists including Neelkanth Mishra wrote in a note.