Market soars post-RBI boost: Sensex jumps 986 points, Nifty zooms to 9,266-level; banking, energy, IT stocks major gainers

Given the strong monetary measures by the RBI and peaking coronavirus cases in the US, risky sectors could gain next week given attractive valuation.

FP Staff April 17, 2020 17:24:43 IST
Market soars post-RBI boost: Sensex jumps 986 points, Nifty zooms to 9,266-level; banking, energy, IT stocks major gainers

Led by strong buying in banking stocks, the market ended the session by 3 percent higher. Bank Nifty closed up by 7 percent and the largest private sector banks such as ICICI Bank and Axis Bank ended the session with a gain of 10 percent. Sentiments got a boost and investors piled up positions in banking stocks after the RBI eased NPA recognition norm.

The NBFCs also remained on buying radar after the RBI announcement of measures to combat liquidity problems faced by mid and small NBFCs and provide NPA recognition relaxation.

Sectorally, barring pharma and FMCG, all indices ended in the green. Given the strong monetary measures by the RBI and peaking coronavirus cases in the US, risky sectors could gain next week given attractive valuation.

The Sensex rallied 986 points on Friday, led by gains in banking, energy and IT stocks after the Reserve Bank announced a slew of liquidity-boosting measures to support the economy during the coronavirus crisis.

The RBI further eased bad-loan rules, froze dividend payment by lenders and pushed banks to lend more by cutting the reverse repo rate by 25 basis points.

Market soars postRBI boost Sensex jumps 986 points Nifty zooms to 9266level banking energy IT stocks major gainers

Representative image. Reuters

After starting over 1,116 points higher, the 30-share BSE benchmark pared some early gains to end 986.11 points or 3.22 percent higher at 31,588.72.

Similarly, the NSE Nifty zoomed 273.95 points, or 3.03 percent, to finish at 9,266.75.

Sumeet Bagadia, Executive Director Choice Broking, said: "Finally Nifty settled its weekly closing at 9,290-level with the gain of 298 points. During the trading session, we have seen a positive openinG. However, after RBI Meeting, Nifty went up to its intraday low, though during the dying hours, we saw a sharp recovery in the Index based on its large-cap constituents which further indicates an upside movement in the Nifty. For the time being, downside support comes at 9100 level which upside resistance comes at 9300, if Nifty sustains above 9300 then we may see a further upside movement up to 9500-9600 level in upcoming trading sessions."

Axis Bank was the top gainer in the Sensex pack, surging over 13 percent, followed by ICICI Bank, IndusInd Bank, Maruti, TCS, Kotak Bank and Reliance Industries.

On the other hand, Nestle India, HUL, Tech Mahindra and Sun Pharma ended in the red.

Interest rate-sensitive, banking, financial, auto and realty indices settled up to 6.83 percent higher.

In his second televised address since the nationwide lockdown began on March 25, Reserve Bank of India (RBI) Governor Shaktikanta Das pledged to boost liquidity and expand bank credit.

He announced measures including a cut in the reverse repo rate, Rs 50,000-crore targeted long-term repo operations (TLTRO) and refinancing facilities for Nabard, Sidbi and NHB.

The rupee rebounded 48 paise to provisionally settle at 76.39 against the US dollar, buoyed by RBI announcements.

The market ended on a firm note tracking positive global cues and the announcement of the stimulus package by the RBI, said Sanjeev Zarbade, VP PCG Research, Kotak Securities to PTI.

Further, reports from the US that a drug from Gilead is showing great results in treating COVID-19 cases also led to positive sentiments, he added.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant gains, and stock exchanges in Europe were also trading on a strong note.

Meanwhile, Brent crude futures, the global oil benchmark, rose marginally to $27.84 per barrel.

The death toll due to Covid-19 rose to 437, while the number of cases in the country climbed to 13,387.

Global tally of the infections has crossed 21 lakh, with over 1.45 lakh deaths.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

In Maharashtra's Thane, medicos give 106-year-old woman who beat COVID-19 warm farewell
India

In Maharashtra's Thane, medicos give 106-year-old woman who beat COVID-19 warm farewell

After the Dombivli-based centenarian contracted the disease, no hospital was initially ready to admit her due to her age, said her daughter-in-law

Route Mobile IPO: How to check your allotment status on bseindia.com
India

Route Mobile IPO: How to check your allotment status on bseindia.com

The Mumbai-based cloud communications service provider is exepcted to be listed on the exchanges on 21 September with a final issue price of Rs 350 per share

'GDP a reflection of ravages of COVID-19': RBI Guv Shaktikanta Das says economic recovery likely to be gradual
Business

'GDP a reflection of ravages of COVID-19': RBI Guv Shaktikanta Das says economic recovery likely to be gradual

The RBI governor said the Indian central bank stands battle-ready to take whatever steps that are needed to be taken for the economy