- So far, 1040 cases of coronavirus have been reported in the country.
- RBI has cut the repo rate by 0.75 percent i.e. 75 basis points.
Coronavirus has had an impact on the worldwide market. In such a situation, the Indian stock market was also not untouched by this. The market continued its ups and downs last week. Several important steps are being taken by the government to stop Corona. Due to the steps taken by the government, the market has seen stability. However, these 7 factors can guide the market this week.
1. More than 1000 cases of coronavirus
So far, 1040 cases of coronavirus have been reported in the country. Maharashtra has the highest number of 7 new cases reported on Sunday. Apart from this, 3 patients have been found in Ahmedabad in Gujarat and Bhilwara in Rajasthan. Earlier on Saturday night, 5 new cases (4 Indore, 1 Ujjain) appeared in Madhya Pradesh. According to the website covid19india.org the total number of infected people in the country. At present, the number of infected people in the government figures is 979. It is being told that 86 of these have been cured, while 25 have died.
2. RBI cuts repo rate
The RBI has cut the repo rate by 0.75 percent or 75 basis points. It was announced to reduce the repo rate from 5.15 percent to 4.4 percent after the meeting of the Monetary Policy Committee amid the lockdown. The RBI governor said the reduction in the repo rate would help in tackling the economic impact of the coronavirus epidemic. At the same time, a reduction of 90 basis points in the reverse repo rate has been announced. Now the reverse repo rate will be 4 percent. The RBI governor said that other steps, including reduction in CRR, repo rate, would provide additional cash money equivalent to Rs 3.74 lakh crore to lend to banks.
3. Government further to help the poor
Finance Minister Nirmala Sitharaman announced a package of Rs 1.7 lakh crore to deal with the coronavirus crisis. The Finance Minister said that the Pradhan Mantri Garib Kalyan Yojana has been launched to deal with Corona. She said that it would be the government’s endeavor that no person of the country would sleep hungry during the 21-day lockdown. In this package, 80 million poor people will be given 5 kg of wheat or rice and pulses free for the next three months. ASHA workers, doctors, paramedical staff will have insurance of 50 lakhs.
4. PSU Bank Merger
On 1 April, 10 public banks are merged to form four banks. In this way, the total number of public sector banks will be reduced from 27 to 12. Oriental Bank of Commerce and United Bank will be merged with Punjab National Bank. Canara Bank and Syndicate Bank are merged to form a bank. Union Bank, Andhra Bank and Corporation Bank are merging. Similarly, Indian Bank is to be merged with Allahabad Bank. Debashish Panda, Secretary of Financial Services, said that the merger process of the banks is going on as per the pre-determined schedule and it will be effective from the pre-determined date.
5. Crude Oil Price Reduction
Due to coronavirus, worldwide demand for crude oil has decreased. At the same time, Russia has refused to reduce oil production, after which Saudi Arabia announced simultaneously to increase oil production and reduce the price of oil. Due to all these reasons, the price of crude oil has been recorded in the international market. Last week, Brent crude was trading 3.44 percent down at $ 36.48 a barrel.
6. Reduced Auto sales due to coronavirus epidemic
According to Fada President Ashish Hansraj Kale, most vehicle dealership stores in the country have been shut for the last several days due to fear of spreading the coronavirus. This has resulted in a 60 to 70 percent decline in vehicle sales. He said that at present, the stock of BS4 vehicles in the country is approx 8.35 units, which is worth Rs 4,600 crore. Kale said the BS4 vehicles in the passenger vehicle and commercial vehicle segments will be out of stock on time. But the stock of two-wheelers will be difficult to finish by 31 March.
7. $12 billion decrease in foreign exchange reserves
In the week ending March 20, the country’s foreign exchange reserves fell by $ 11.98 billion to $ 469.909 billion. Last week, the country’s foreign exchange reserves had decreased by $ 5.346 billion to $ 481.89 billion. This is the first decline in the country’s foreign exchange reserves in the last six months. Earlier, there was a decline in foreign exchange reserves in the week ended 20 September 2019. At that time it was reduced by $ 388 million to $ 428.58 billion. The country’s foreign exchange reserves rose by $ 5.69 billion to the all-time high of $ 487.23 billion for the week ended March 6.