Mumbai, April 27 (IANS) Indian equity market rose on Monday as the Reserve Bank of India (RBI) announced to open a special liquidity facility (SLF-MF) worth Rs 50,000 crore for mutual funds.
Post the announcement, banking and finance stocks surged. The S&P BSE Banking index ended 2.88 per cent higher and the BSE Finance index rose by 2.09 per cent.
Investors were nervous after Franklin Templeton Mutual Fund announced the closure of six of its credit funds due to liquidity issues.
Rahul Sharma, Research Head at Equity99, said: “Timely liquidity support by the Reserve Bank of India (RBI) lifted the market sentiments today. Gains in banking and financial stocks led the market rally, in an otherwise volatile trading session.”
Further, a positive trend in the global markets including Asian and European indices also supported the domestic markets.
The BSE Sensex closed at 31,743.08, higher by 415.86 or 1.33 per cent from the previous close of 31,327.22.
It had opened at 31,659.04 and has so far touched an intra-day high of 32,103.70 and a low of 31,651.58.
The Nifty50 on the National Stock Exchange closed at 9,282.30, higher by 127.90 points or 1.40 per cent from the previous close.
Deepak Jasani, Head of Retail Research at HDFC Securities, said: “With the Nifty rallying higher, the short term trend continues to remain up. Further upsides are likely once the immediate resistance of 9,377 is taken out. Crucial supports to watch for any weakness are at 9,259-9,141.”
Vinod Nair, Head of Research at Geojit Financial Services, said that the news regarding the RBI liquidity facility for mutual funds and stimulus packages from central banks around the world provided some positivity to the markets.
“Investors are looking towards earnings results coming out later and during the week for more clarity on the specific sectors. Credit risk concerns remain and investors are advised to remain cautious,” he said.