India’s RBI says it’s ready to act to calm markets

Bloomberg

The Reserve Bank of India (RBI) said it’s ready to act to counter financial market volatility amid the coronavirus outbreak, reiterating comments from global central bankers in recent days.
While spillovers into domestic financial markets have been relatively contained, the RBI said in a statement on Tuesday it “stands ready to take appropriate actions to ensure orderly functioning of financial markets, maintain market confidence and preserve financial stability.”
Central banks in Japan and the UK pledged action to stabilize markets, following on from comments from the US Federal Reserve last week signalling a possible rate cut. “Growing hopes of coordinated policy action to mitigate a broader fallout to economic activity has boosted market sentiment today,” RBI said.
India’s benchmark S&P BSE Sensex index was trading 1.5% higher on Tuesday, on course for its biggest advance in a month while the rupee gained as much as 0.4% in early trade before turning lower. Bonds gained early in the session with the yield dropping to 6.34%.
Prime Minister Narendra Modi, who held a review of the nation’s preparedness to handle the spread of the virus, said Tuesday “there is no need to panic.” Five people have tested positive for the virus as of March 2.