RBI comforts Indian financial markets over coronavirus scare

The Reserve Bank of India has comforted a panic-stricken market that has shown a precipitous fall mirroring a global trend as coronavirus fears grip the global economy.

In a note, the RBI said that it is ready to "take appropriate action to ensure orderly functioning of financial markets, maintain market confidence and preserve financial stability".

The RBI's response comes in the wake of Indian benchmark indices falling over fears that the nascent recovery seen in the Indian economy could be hit by the coronavirus outbreak. Globally, the spread of coronavirus in US, Italy and Iran has resulted in investors moving away from equities and putting their bets on government bonds.


The RBI further added that it is constantly tracking global and domestic developments and that spillovers to financial markets in India have largely been contained.