Market volatility has soared when again today with stocks down over 7%at open amid the coronavirus scare.
The rupee too has actually plunged to a record low versus the United States dollar as financiers continued to strongly sell domestic possessions.
4: 15 PM
RBI extends liquidity assistance to Yes Bank
To prevent a possible depositor run, the RBI has actually extended an emergency situation line of credit to Yes Bank. The RBI moratorium that limited deposit withdrawal from Yes Bank, it deserves noting, was lifted last night.
PTI reports: “To tide over liquidity issue, the Reserve Bank of India (RBI) has actually extended Rs 60,000- crore line of credit to Yes Bank so that it meets responsibility of depositors, sources said.
This remains in line with assurance provided by RBI Governor Shaktikanta Das on Monday stating the regulator was all set to offer liquidity if required after lifting of moratorium.
Based On Section 17 of RBI Act 1934, the central bank can offer liquidity support to any lender in the form of loans and advances against security such as stocks, funds and securities (other than stationary property) in which a trustee is authorised to invest trust cash by an Act of Parliament.”
3: 30 PM
Stocks trim losses
The benchmark stock indices were down over 2%at the end of trading today. The Sensex lost almost 600 points while the Nifty was trading below 8,300
In the morning session, both the Sensex and the Nifty were trading at a loss of over 7%just minutes after open.
The economic effect of the shutdown ordered by the federal government has rattled stocks in various sectors consisting of airlines, autos etc.
3: 15 PM
Airline company industry might not make it through without state aid, says Lufthansa
Travel prohibits enforced by federal governments to tackle the spread of the coronavirus pandemic threaten to totally down the airline industry.
Reuters reports on the hazard: “Lufthansa stated that the airline company market may not endure without state aid if the coronavirus epidemic lasts for a long time, as it tosses whatever at bringing house stranded tourists and keeping industrial supply chains open.
The German airline group has slashed capability, proposed short-time working and suspended its dividend, saying it was difficult to forecast the impact of coronavirus on profitability.
The desperate outlook came as airline company chaos deepened on Thursday, with Australia’s Qantas Airways Ltd informing most of its 30,000 workers to depart and India preparing a $1.6 billion rescue bundle to aid providers.”
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