The BSE Sensex soared over 986 points on Friday after RBI’s second batch of stimulus measures lifted sentiment amid the coronavirus gloom.
Announcing a slew of liquidity-boosting measures for NBFCs and other segments, 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.
After starting over 1,116 points higher, the 30-share BSE Sensex pared some early gains to end 986.11 points or 3.22 per cent higher at 31,588.72.
Similarly, the NSE Nifty zoomed 273.95 points, or 3.03 per cent, to finish at 9,266.75.
Axis Bank was the top gainer in the Sensex pack, surging 13.45 per cent, followed by ICICI Bank (9.89 per cent), IndusInd Bank (9.13 per cent), Maruti (7.36 per cent), TCS (5.32 per cent), Kotak Bank (4.96 per cent)and Reliance Industries (4.86 per cent).
On the other hand, Nestle India, HUL, Tech Mahindra and Sun Pharma ended in the red, shedding up to 3.15 per cent. Interest rate-sensitive banking, financial, auto and realty indices on the
BSE settled up to 6.83 per cent 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.
During the holiday-shortened week, the Sensex rose 429.10 points or 1.37 per cent, while Nifty advanced 154.85 points or 1.69 per cent.
Market ended on a firm note tracking positive global cues and announcement of stimulus package by the RBI, said Sanjeev Zarbade, VP PCG Research, Kotak Securities.
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.