Fear of a global coronavirus pandemic grew as cases worldwide were higher than in China

Abhishek Goenka IFA Global

Rupee outperformed on account of lower crude prices and month-end exporter selling. Further, SBI Cards IPO related inflow and strengthening Chinese yuan backed the Rupee. Growing expectations that the US Federal Reserve may cut interest rates to tackle the possible impact of the coronavirus weighed on the greenback globally. Domestic equities ended in red for the fifth consecutive session, closing with 0.4% cut tracking weak global cues. The benchmark bond yields rose by 3bps at 6.38%. The yen was among the top performers against USD as investors are flocking to safe-haven assets. Fear of a global coronavirus pandemic grew after reports said the daily number of infections worldwide was higher than in China. The pound remained under pressure on concerns whether the UK government will struggle to increase public spending to support the economy. EURUSD continues to push higher in a recovery that began last week and gain is attributed to a weaker dollar.

USDINR CHART (Daily Chart)

Benchmark indices ended lower for the fifth consecutive session but recovered from the day's low in the final hour of trade. The global market got impacted as new coronavirus cases outside China exceeded those in China for the first time. The focus now shifts towards tomorrow's crucial Q3FY20 India's GDP data. At close, the Sensex was down 143 points at 39746, while Nifty was down 45 points at 11633.

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Abhishek Goenka

IFA Global

Mr. Abhishek Goenka is the Founder and CEO of IFA Global. He pilots the IFA Global strategic direction with a focus on relentlessly improving the existing offerings while constantly searching for the next generation of business excellence.

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