Home / Business News / As coronavirus fears escalate in India, RBI steps in to calm markets
The Reserve Bank of India (RBI) has said that it is closely monitoring global as well as domestic situation regarding the impact of the deadly coronavirus and is ready to take necessary action to ensure orderly functioning of financial markets.The comments came after bloodbath in the markets, with Sensex shedding more than 1000 points on Monday. The benchmark Nifty too tanked after the fear of Covid-19 outbreak spooked investors.The fall arrested on Tuesday, and the markets recovered but apprehensions remained about coronavirus’ impact on financial markets.ALSO WATCH | ‘There is no need to panic’: PM Modi’s message on Coronavirus scareGlobal stocks also rallied on hopes of stimulus from policy makers to lessen the impact of coronavirus on their economies ahead of the talks between G7 finance ministers and central bank heads.Also read: Sensex snaps 7-day losing streak as RBI assures steps to mitigate coronavirus impact“Globally, financial markets have been experiencing considerable volatility, with the spread of the coronavirus triggering risk-off sentiments and flights to safe haven,” the RBI said in a statement.Earlier, European Central Bank had said that it is ready to take ‘targeted’ action to address the economic impact of the outbreak while the US Federal Reserve last week said that it would use its tools and “act as appropriate to support the economy”.Global central banks have stepped in to calm financial markets after the last trading week ending Friday proved to be one of the worst since the 2008 global financial crises. The US main index Dow Jones had fallen over 1,000 points a number of times while benchmark Sensex lost over 3,000 points in the last seven days.The World Health Organisation (WHO) has said that the coronavirus outbreak has reached a “decisive point” and has “pandemic potential” as the death toll in China crossed 3,000.Also read: 2 Noida schools shut after parent of a child tests positive for coronavirusWith the threat of COVID-19 looming large, the government has tightened the entry conditions for the nationals of Italy, Iran, South Korea and Japan with immediate effect. As per the revised travel advisory issued on Tuesday by the Union Health Ministry, new travellers from these countries will have to apply for new visas.