Major Indices drop: Dow Jones and S&P 500 lose around 4%, We have entered Recession
Major stock indices around the world slumped on Friday. The IMF Managing Director, Kristalina Georgieva announced late on Friday that the world economy has entered a recession similar to the 2008 subprime crisis era. Friday witnessed a surge in selling.
The total number of Coronavirus cases in the US alone stands at 85,000
- The Dow Jones ended at 21,636.78, while the S&P 500 finished the day at 2,541.47.
- The Nasdaq Composite index loses 295 points and stood at 7502.38.
India’s BSE Sensex and Nifty end the day in red despite gains on opening
The Government of India announced a relief package of Rs. 1.7 lakh crore on Thursday. And on Friday, both the Sensex and Nifty opened higher. There was also great anticipation from the Reserve Bank of India announcement that was to happen at around 10 am. The RBI did announce some extraordinary measures keeping in mind the unusual circumstances.
Major highlights from the RBI announcement:
- REPO rate cut to 4.4%, and the Reverse REPO stands at 4%. This is the highest ever rate announced by the RBI so far.
- Cash Reserve Ratio or CRR reduced to 3%. This reduction will ensure more liquidity with the banks to continue their operations.
- Banks and NBFCs permitted to allow a moratorium period of 3 months on payment of term loans.
- Banks are allowed to recalculate their Working Capital facility, which will not be considered towards NPA.
All these measures are time-bound and are valid for three months
Bitcoin tumbles more than $500 amidst rising fear
Analysts predicted a massive downfall in Bitcoin prices as the charts showed Bearish pattern indicating lows for the medium as well as the long term. The BTC had entered a consolidation phase on Thursday. It is currently trading at $6,150. The primary support levels are at $5,750 and $5,500.
The picture will become more apparent as the markets reopen on Monday.