Sensex, Nifty spurt as RBI steps in to ease MF's liquidity woes

Mumbai, April 27

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Indian equities on Monday closed significantly higher despite paring notable intra-day gains, as financial stocks came to life on the Reserve Bank’s move to offer Rs 50,000 crore liquidity support to mutual funds.

At close, the BSE gauge Sensex was up 415.86 points or 1.33 per cent at 31,743.08. The index tumbled 360 points from its day’s high of 32,103.

Similarly, the NSE barometer Nifty settled higher by 127.90 points or 1.40 per cent at 9,282.30.

On the Sensex chart, 25 scrips closed in the green.

IndusInd Bank was the top gainer in the Sensex pack, rallying over 6 per cent, ahead of its earnings announcement. Axis Bank, Kotak Bank, ICICI Bank and Bajaj Finance too surged up to 5 per cent.

Also read: RBI announces Rs 50,000 crore special liquidity facility for mutual funds

On the other hand, NTPC, M&M, HDFC Bank, Bharti Airtel and ITC were the laggards.

Sectorally, bank, finance, basic materials, realty, healthcare and IT indices rallied up to 3.54 per cent. While BSE power index was the only loser among the 19 indicies.

In the broader market, midcap and smallcap indices outperformed the Sensex, rising up to 1.44 per cent.

The Indian market was also lifted by positive sentiment on Asian bourses as hope for more monetary policy easing by global central banks gained further traction after Bank of Japan stepped up its stimulus to contain virus shock to its economy.

Broadly, the domestic market was driven by the Reserve Bank’s announcement of a special liquidity facility of Rs 50,000 crore for mutual funds, with an aim to ease liquidity pressures on mutual funds.

Some profit-booking at the fag-end of the session, however, pulled key indices from the day’s highs.

“Markets closed positive in sync with the global markets. News regarding the RBI liquidity facility for mutual funds and stimulus packages from central banks around the world provided some positivity to the markets,” Vinod Nair, Head of Research at Geojit Financial Services, said.

Also read: Rupee rises by 21 paise to 76.25 in line with firm stocks

Investors are looking towards earnings results coming out later and during the week for more clarity on the specific sectors, he said.

Meanwhile, besides special liquidity facility for mutual funds, the central bank stressed that it is vigilant and will take whatever steps are necessary to mitigate the economic impact of COVID-19 and preserve the financial stability.

On the currency front, the rupee rose 21 paise to close at 76.25 against the US dollar.

Globally, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with significant gains, while those in Europe were trading on a positive note.

Global oil benchmark Brent crude futures slump 4.03 per cent to USD 23.81 per barrel.

Global tally of coronavirus infections has crossed 29.7 lakh, with over 2 lakh deaths.

Death toll in India rose to 872, while COVID-19 cases climbed to 27,892, as per health ministry data. PTI

Also read: Stocks rise as governments plan to ease virus lockdowns