Sensex, Nifty climb off day’s highs, still up 2%; Key factors driving D-Street higher today
Housing Finance companies shares gained up to 8.4 per cent after RBI announced a special refinance facility of Rs 15,000 crore to SIDBI, Rs 25,000 crore to NABARD, and Rs 10,000 crore to HFCs to support liquidity
The headline indices BSE Sensex and Nifty 50 were trading in positive territory on Friday as Reserve bank of India (RBI) announced 25 bps cut in reverse repo rate. Apart from this, firm global cues also supported the benchmark indices. BSE Sensex was trading 667 points or 2.18 per cent higher at 31,270, while the broader Nifty 50 was ruling at 9,183, up 191 points or 2.12 per cent. The top Sensex gainers were TCS, Power Grid, ICICI Bank and Maruti Suzuki. On the flip side, Tech Mahindra, HUL, Titan, Sun Pharma and Nestle India were the top Sensex laggards. “It would be difficult for markets to maintain the positive bias for long especially when the domestic factors are pointing otherwise. We suggest continuing with a hedged approach and maintaining a few shorts also,” Ajit Mishra, VP – Research, Religare Broking Ltd, said.1. HFCs gain: Housing Finance companies shares gained up to 8.4 per cent after RBI announced a special refinance facility of Rs 15,000 crore to SIDBI, Rs 25,000 crore to NABARD, and Rs 10,000 crore to HFCs to support liquidity. India Home Loan share price surged 8.39 per cent, Indiabulls Housing Finance up was 8.4 per cent and LIC Housing Finance gained 6 per cent.
2. RBI cuts reverse repo rate: Reserve Bank of India Governor Shaktikanta Das announced a 25 bps cut in reverse repo rate today. “Another cut in reverse repo is intended to disincentivize banks from parking funds with the RBI and to incentivize them to lend to the real economy instead. Combination of measures to boost liquidity, improve monetary transmission and relax repayment schedules is the need of the hour in which RBI has been proactive and repeatedly insisting that they would do whatever it takes,” Abhishek Goenka, Founder & CEO, IFA Global, said.
3. Nifty Realty index jumps over 6%: Barring Nifty FMCG and Nifty Pharma, all the Nifty sectoral indices were trading higher in Friday’s trade. Nifty Realty index was up 6 per cent led by gains in Oberoi Realty, Sobha, DLF and Mahindra Lifespace Developers.
4. TCS share price jumps: TCS shares jumped 7.39 per cent to Rs 1,842 apiece on BSE in morning trade after the company announced that it will not offer increments but will not retrench employees either, despite the problems on the demand side. The IT giant said it would continue to give promotions and those recruited in FY20 would be taken on board.
5. Firm global markets: Asian stocks rose on Friday to recover towards a one-month high as investors, following Wall Street’s lead overnight, sought silver linings in a run of data that showed the world is in its worst recession in decades, Reuters reported. US stocks surged higher on Thursday. The Dow Jones Industrial Average rose 33.33 points, or 0.14%, to 23,537.68. The S&P 500 gained 16.19 points, or 0.58%, to 2,799.55 and the Nasdaq Composite added 139.19 points, or 1.66%, to 8,532.36.
6. FII and DII data: Foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 2,920 crore, while the domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,321.44 crore on Thursday, data available with NSE suggested.
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