Sensex closes 415 points higher on Rs 50,000-crore liquidity facility for MFs
Sensex and Nifty closed higher on Monday, led by strong global cues amid heavy buying in financial stocks. Financials gained after RBI announced special liquidity facility worth Rs 50,000 cr for mutual funds.
While Sensex closed 415 points or 1.33% higher at 31,743, Nifty gained 127 points or 1.4% to 9,282.
All sectoral indices ended higher. Apart from banking, sectors such as FMCG, healthcare, metal and IT also led the market momentum.
Domestic indices followed bullish cues from overseas as investors worldwide banked upon hopes over prospects of ease in lockdowns and more stimulus from central banks worldwide to curb the economic damage from the spread of coronavirus. The domestic market will continue taking cues from the worldwide trend, as per market experts.
Financial stocks outperformed in trade today as sentiments were boosted by RBI's announcement of special liquidity facility worth Rs 50,000 crore for Mutual Funds (SLF-MF). Top gainers on both BSE and NSE included Kotak Bank, Axis Bank, Bajaj Finance, IndusInd Bank, HDFC, ICICI Bank and Bajaj Finserv.
Expressing his views on closing today, Ajit Mishra, VP - Research, Religare Broking said," The Indian markets had a promising start to the week largely led by a surge in banking and financial stocks following RBI's liquidity support to the stressed mutual funds."
Markets globally were trading in positive on Monday, taking positive cues from Wall Street's closing on Friday. Supported by gains in technology shares and stability in oil prices, US indices closed 1% higher each on Friday, amid reports that some states were preparing to ease coronavirus-related lockdowns.
Asian markets were ended positive led by Nikkei, ahead of Bank of Japan monetary meet. Federal Reserve and the European Central Bank will meet later in the week, while Bank of Japan has begun the policy meeting today.
European markets also opened in green with FTSE rising 1.3%, DAX gaining 1.5% and CAC up at 2%.
Traders said investors were also factoring in the March corporate earnings. Companies scheduled to report Q4 earnings today after market hours are Adani Power, Sasken, HDFC Life, Ambuja Cement, IndusInd Bank.
" Investors are looking towards earnings results coming out later and during the week for more clarity on the specific sectors", said Vinod Nair, Head of Research at Geojit Financial Services
Indian rupee, the local currency, ended higher by 21 paise at 76.24 per dollar.
On support and resistance levels for Nifty, Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking said," As of now, we are hoping for the breakout to happen in an upward direction (above 9400), which would then propel the rally towards 9500-9700 levels. 9400 on the higher side and 8900 on the lower side are the levels to watch out for."
As of today, the total number of confirmed COVID-19 cases in India stood at 27,892 cases, of which the highest single-day spike of 1,975 cases were reported on April 26.