As coronavirus-led recession fears triggered panic selling in the global markets followed by domestic indices, Sensex and Nifty both plunged over 10 percent in the opening session, striking their lower circuit levels.
The Indian Stock exchanges halted trading for 45 minutes. Normal trading resumed at around 10:30 hours. The last lower circuit freeze happened in January 2008.
For the revival of the economy, RBI and government together keenly observing the situation, facing the instability in the markets amid rising coronavirus dreads.
RBI said that we are closely and continuously monitoring the rapidly evolving global situation and will take all necessary measures to ensure that money, debt and forex markets remain adequately liquid and stable, and continue to function normally.
On Friday, the RBI also announced to flood additional short-term liquidity of Rs.25000 crores into the system to offset the domestic liquidity effects on account of dollar sell-buy swap.
If we talk about currency markets, at open, the rupee fell to a record low of 74.5075 against the US dollar. The Indian rupee recovered sharply to trade 46 paise higher at 73.82 against the US dollar.
FM Nirmala Sitharaman said, on the situation arising out of a panic blowout of coronavirus pandemic.
This is the biggest intra-day sell-off in the early session, almost Rs.12 lakh crores wiped out from the investor's wealth in less than 20 minutes in the opening trade.