(Bloomberg) -- India's benchmark stock index closed negative, reversing gains, after the country's central bank announced a currency swap and measures to boost liquidity but held back from following global peers with an emergency rate cut.
The S&P BSE Sensex fell 2.6% to 30,579 as of the 3:30 p.m. close in Mumbai after dropping as much as 3.2% and advancing as much as 2% earlier in the session. The measure sank 8% yesterday after it fell into a bear market last week. Nifty Index fell 2.5% today.
The NSE Volatility Index is at levels last seen in the 2008 financial crisis, indicating deeper uncertainty about the direction of stock moves. The Philippines closed its financial markets until Thursday to prevent a deeper rout.
Strategist View
Analysts at Mumbai-based Motilal Oswal Securities Ltd. led by Gautam Duggad expect “significant earnings downgrades” for companies as commodity prices fall and India increases restrictions on movement to contain the novel coronavirus outbreak.
The Numbers
- Eighteen of 19 sector sub-indexes compiled by BSE Ltd. dropped, led by a gauge of banks
- ICICI Bank contributed most to the index decline and was the biggest loser with a 9% drop; Hindustan Unilever contributed most to the index gain and climbed the most with a 3.5% jump
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