RBI may come to the rescue of bleeding markets with liquidity-boost

The market has been expecting an off-cycle interest rate cut by the Reserve Bank of India but the source said no such step is being mulled at this point in time

Reserve Bank of India (RBI) is likely to announce liquidity-boosting measures to help stabilise financial markets which have fallen sharply due to the coronavirus outbreak, a source said on Thursday.

The Indian stock market plunged into bear territory on Thursday, with the blue-chip Nifty 50 sliding to its lowest in over two and half years, after the coronavirus outbreak was termed a pandemic and the United States suspended travel from Europe.

The markets recouped some losses after the news with Nifty 50 and S&P BSE Sensex down over 6 per cent, off day's lows of over 7.5 per cent.

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