RBI today announced a major boost in the threat of damage to the economy due to corona virus. The Reserve Bank has cut interest rates by 75 basis points. After this cut, the repo rate has now come down to 4.4 per cent. RBI Governor Shaktikanta Das said that the Monetary Policy Committee held a review meeting prematurely in view of the threat to the economy due to corona virus. The review meeting lasted from March 24 to 27. It was decided not to make any changes in the rates in the last review meeting. Even before that, the RBI has cut rates 5 times.
Fear of economy being affected
Let’s say that the corona virus has spread all over the world, global economy is under pressure. In view of this, countries across the world are doing everything possible to get their economy back on track. Carona has disrupted the global supply chain, affecting domestic companies as well. It is affecting several key sectors and their fourth quarter results are likely to be affected. The revenue of companies may decline significantly. In view of this, the government and RBI are also engaged in taking several measures on their part.
Bank and financial shares boom
The stock market is seeing a spectacular spurt after the expected rate cut. The Sensex gained nearly 1,000 points to 30,948.97. The nifty also went beyond the 8950 with a spurt of 350 points. Today’s business has seen a spectacular spurt in bank and financial stocks. In view of the corona virus on Thursday, the government had announced a relief package of Rs 1.70 lakh crore for the poor. This has strengthened the market. In today’s trade, the Sensex is witnessing buying in 26 of 30 shares. IndusInd Bank is still up 15 per cent. Axis Bank, SBI, Bajaj Finance, ICICI Bank and HDFC Bank are the top winners of today.
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