Indian shares are falling in irregular trading on Wednesday, a day after Prime Minister Narendra Modi ordered a 21-day nation-wide lockdown to take precautionary measures and contain the rapid spread of the coronavirus all over the world. The finance minister, Nirmala Sitharaman stated on Tuesday that the government would soon announce a fiscal package to help the economy to rise which has been lowered due to the hit from the virus outbreak.
The finance minister said the government would soon announce a fiscal package to help the economy face the hit from the virus outbreak. In early trade before giving up gains the Nifty as well as the Sensex rose over a percent.
The Nifty was last down 0.96% at 7,731.40 by 0420 GMT, while the Sensex was down 0.91% at 26,418.58. Deepak Jasani, head of retail research at HDFC Securities Ltd said in one of the interviews that they are seeing weakness because there is fear about the impact of the 21 day shutdown due to coronavirus outbreak on the economy. He further added that People will wait to buy shares for some hours at least in this lockdown period. On Tuesday, Modi went live on social media and urged India’s 1.3 billion people to not leave their homes and stay in quarantine for 21 days means next three weeks as health experts warned the virus has possibility to infect more than a million people in the country by mid-May and for that government should take precautionary measures. As of Wednesday morning the Sensex was lower about 35% so far this year on the basis of statistics. This was the worst performance of Indian economy by so far in Asian market. India so far has reported more than 500 cases of the infected people by virus. Death count is more than 10 deaths across the country. And more cases of infection is coming out and increasing day by day. Government and regulatory associations/authorities across several countries all over the world are scrambling to warn people about the danger of coronavirus outbreak and keep people home/isolated and take precautions. That will somehow help to prevent the virus from spreading. Therefore, government has extended the lockdown period for more 21 days. Already slower economy of India is at risk worsening due the pandemic caused by coronavirus. It is declining multi-year lows due to decreasing consumption. The pandemic is threatening people as well as the economy all over the world. Financial shares were the worst hit by so far in Mumbai’s main stock indexes, due to this pandemic, with the NSE Bank index falling over 2%. However, Reliance Industries Ltd share were raised over 9%. According to the media report on Tuesday, American social media and technology company Facebook Inc have had conference meeting India’s leading telecom company Jio. According to their deal, Facebook Inc is buying stake of a multi-billion dollar in the company’s telecom unit, Jio.
Nifty Energy index increased over due to the gain in Reliance share. For a local holiday, bond and rupee markets in India were shut down on Wednesday.