Nifty Pharma index surged to jump 3.3% on Wednesday after RBI Governor Shaktikanta Das announced a special liquidity window for banks that would help them lend more to the healthcare and related sectors.
“Small borrowers and lenders, health sector institutions and stability of market liquidity were the key focus areas of the RBI’s policy announcements. The RBI announced restructuring 2.0 for small borrowers (individuals & MSMEs) and also announced term liquidity facility of Rs 50,000 cr for lending to emergency health services providers. Term liquidity of Rs 10,000 cr announced for SFB and further SFB’s credit to MFI will be considered at priority sector lending. Govt to purchase Rs 35,000 worth of G-Sec to maintain market liquidity,” said Satish Kumar Research Analyst Choice Broking.
&P Global Ratings today said that Reliance Industries’ deleveraging of its balance sheet is likely to continue. The company’s prudent investment policies, stable operations, and potential for further asset monetization should support the trend. “We cannot rule out further asset monetization by RIL over the next 12 to 24 months. The company is in the process of spinning off its oil-to-chemicals segment into a wholly-owned subsidiary. It has a nonbinding letter of intent to sell a 20% stake in the segment to Saudi Arabian Oil Co. Further monetization is possible in RIL’s telecommunications and retail businesses. Moreover, we expect the company to receive about INR400 billion from a rights issue later this year,” S&P said.
Sensex and Nifty continued to hold firm and trade between in a narrow range on Wednesday. Sensex at this hour is up 240 points while Nifty has gained 75 points.
The Nifty Nifty PSU bank index was up 2.1% on Wednesday morning, continuing its rally after a 5% jump recorded on Tuesday.
Nifty Pharma index jumped on Wednesday as RBI stepped in to make funds available for the healthcare sector. Lupin, Aurobindo Pharma were the top gainers on the index. Sun Pharma and Dr Reddy’s were among top Sensex gainers.
Shares of AU Small Finance Bank, Equitas Small Finance Bank, Suryoday Small Finance Bank, and Ujjivan small finance banks were all trading higher on Wednesday as RBI Governor Shaktikanta Das announced measures for small finance banks.
Banks that will lend to boost the healthcare infrastructure in the country under the on-tap liquidity window, will be able to park additional funds with the RBI at a discount rate, Shaktikanta Das said.
To boost the provision of immediate liquidity for ramping up covid-related healthcare infra in the country, RBI will open an on-tap liquidity window of Rs 50,000 crore with tenor of up to 3 year at the repo rate is being opened up till March of next year. Here, the banks can lend to hospitals, manufacturers of oxygen, vaccines, suppliers, distributors, and others.
The Reserve Bank of India will purchase securities worth Rs 35,000 crore on May 20 under the GSAP, RBI Governor Das said.
Sensex and Nifty continued to trade in a range, even as RBI Governor Shaktikanta Das tried to assure that the central bank remains vigilant of the developing economic challenges.
“We are stuck in a tight range: 14400-14700. If we break 14400, we could slide to 14100 and if we get past 14700 on a closing basis, we could see 15000-15100. Traders need to be patient and cautious as markets tend to get volatile which can result in stops getting triggered,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Shaktikanta Das said that global recovery remains uneven and the outlook remains highly uncertain, clouded with downside risks.
Shaktikanta Das said that India needs to fight the virus again, as it did last year and earlier this year.
RBI Governor Shaktikanta Das today said that India is fighting a ferocious rise in infections and deaths due to coronavirus.
Sensex and Nifty trimmed opening gains but still cruised in the positive territory. Sensex was just below 48,500 mark.
“RBI Governor’s announcements today are likely to influence markets, particularly certain segments like banking. Relief to MSMEs & retail borrowers might positively impact banks that have a higher proportion of such loans. The rally in PSU banks yesterday may be in anticipation of this,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sensex began trading above 48,500 on Wednesday morning while Nifty 50 was closing in on 14,600. ONGC and Bajaj Finance were the top index gainers. Broader markets were moving in tandem with the benchmark indices.
“Indian Indices are expected to open on a flattish to positive note as per the trends shown on SGX Nifty. Yesterday, due to Yellen’s comment there was a sell-off seen in the US markets and now RBI’s Governor is expected to make an unscheduled speech at 10 AM, so we have to keep a close watch on his comments too. Any major disappointment in his speech may lead to selling in the market. Some stock specific actions can be witnessed in the stocks such as Adani Green, Tata Steel, SRF, Adani Enterprises, Deepak Nitrite, Ceat, Shalby etc. as these company’s Q4 results would be announced today. 14,200 is a crucial support level for Nifty 50,” said Mohit Nigam, Head, PMS, Hem Securities.
Sensex and Nifty were seen surging higher during the pre-open session on Wednesday. Nifty initially attempted to breach 14,700 levels while Sensex moved past 48,500.
Indian stock market closed at the lowest point of the day on Tuesday. The market is not stabilizing at any specific level, which is an indication of some more uncertainties in the near term. The Nifty/Sensex closed below the level of 14500/48300 that would keep open the possibilities of hitting 14400/14370 (48000/47900) levels, however, it is crucial for the market to close above the levels of 14450/48100 to maintain the upward bias.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of Petrol and Diesel were hiked for the second day running on Wednesday. Petrol in Delhi now costs Rs 90.74 per litre, an increase of 19 paise against yesterday’s price. Diesel price was increased by 21 paise to Rs 81.12 per litre. Prices were changed yesterday after 18 consecutive days of stable prices. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
BSE Sensex and Nifty 50 are once again looking to open in red on Wednesday, after ending nearly a per cent lower in the previous session. S&P BSE Sensex sits at 48,253, down 465 points while the Nifty 50 index closed just below 14,500. Trends on SGX Nifty were hinting at a gap-down opening for the domestic equity market indices. Technical analysts believe that Nifty 50 index has not broken the 14,400 level on a closing basis which means the support still holds.
Nifty futures were trading over half a per cent lower at 14,450 on Singaporean Exchange, indicating a negative opening for BSE Sensex and Nifty 50 on Wednesday. S&P BSE Sensex closed at 48,253 while the Nifty 50 index just below 14,500 in the previous session. Stock markets in Japan and China were shut for a holiday. All eyes will be on RBI’s press conference today 10 am that may set the market tone.
The Department of Telecommunications (DoT) has given the go-ahead for 5G trials in the country, though with some delay. As expected, Huawei and ZTE will not be participating in the forthcoming trials since telecom operators had submitted multiple applications and the Chinese firms were not marked on the priority list.
RBI Governor Shaktikanta Das is scheduled to speak to the media today at 10 AM. Eyes will be glued on the RBI Governor and any key announcements that may dictate market movement.
Nifty futures on the Singapore Exchange hints at a flat opening for Dalal Street on Wednesday morning. Sensex and Nifty closed deep in red on Tuesday, erasing all intra-day gains.
Computer major Dell and contract manufacturers Foxconn, Wistron and Flextronics are among the 19 companies that have filed their applications under the production linked incentive (PLI) scheme for IT hardware, notified on March 3, 2021.