Global markets plunged last week as the coronavirus, or COVID-19, spread to several countries, sparking fears of a pandemic.
Even as investors worry about the economic fallout of the coronavirus outbreak, the Reserve Bank of India (RBI) said it is "monitoring global and domestic developments closely and continuously."
Commenting on the recent volatility in global markets, the central bank on March 3 said the spread of the coronavirus has triggered risk-off sentiment.
Soothing concerns, it promised to take appropriate action to ensure that financial markets run smoothly. "The spillover to financial markets in India has largely been contained. Growing hopes of coordinated policy action to mitigate a broader fallout to economic activity has boosted market sentiment today," the banking regulator said in a statement.
Fears of coronavirus, or COVID-19, turning into a pandemic have been weighing on financial markets globally.
Benchmark indices in India ended in the red for the seventh consecutive session on March 2 as concerns over the spread of coronavirus continued to weigh on investor sentiment.
D-Street witnessed one of the most volatile sessions in the recent past on March 2, a swing of around 1,000-points, which wiped out most gains made on the Sensex.
In India, there have been six confirmed cases of coronavirus so far.
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