Indian shares look set to open lower on Wednesday after Prime Minister Narendra Modi ordered all 1.3 billion people in the country to stay inside their homes for three weeks starting today to curb the spread of the coronavirus pandemic and save India from a massive outbreak that could overwhelm the healthcare system. Twenty one days are crucial to break the cycle of transmission, Modi said.
Benchmark indexes Sensex and the Nifty jumped 2.7 percent and 2.5 percent, respectively on Tuesday, while the rupee settled 26 paise higher at 75.94 against the U.S. dollar.
Asian markets remain broadly higher this morning despite mainland China seeing a doubling in new coronavirus cases, the U.K. reporting the biggest daily rise in virus deaths and the World Health Organization warning that the United States could become the global epicenter of the pandemic.
More than 415,000 people worldwide have been infected and over 18,500 have died, according to Johns Hopkins University.
The dollar steadied and gold extended gains while oil prices extended their rebound after the American Petroleum Institute (API) reported a drop in the U.S. crude oil supply.
Overnight, U.S. stocks soared amid signs that Democrats and Republicans are closing in on an agreement on a massive fiscal stimulus bill. Traders also reacted positively to President Trump's push to shorten coronavirus shutdown and get the economy back up and running.
The Dow Jones Industrial Average skyrocketed 11.4 percent to post its biggest percentage gain since 1933, while the tech-heavy Nasdaq Composite rallied 8.1 percent and the S&P 500 climbed 9.4 percent.
European markets posted their biggest one-day gain since late 2008, with the Fed's unprecedented stimulus and a slowdown in virus infections in Italy boosting sentiment.
The pan European Stoxx 600 gained 8.4 percent. The German DAX jumped 11 percent, France's CAC 40 index spiked 8.4 percent and the U.K.'s FTSE 100 advanced 9.1 percent.
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