were initially subdued, with the Sensex
coming off nearly 500 points after the RBI’s measures. But, a strong undercurrent in global indices saw the benchmarks close near the day’s high, with banking and financial stocks leading the charge. Axis Bank
surged 13.4 per cent, while ICICI Bank
and IndusInd Bank
rose over 9 per cent. Consumer stocks saw profit-booking, with Nestlé and Hindustan Unilever
slipping 3 per cent and 2 per cent, respectively. “The measures announced by the RBI will help inject the much-needed liquidity into the system, and facilitate as well as incentivise credit flow. This will provide flexibility on regulatory forbearance,” said Motilal Oswal, MD and CEO of Motilal Oswal
NBFCs, including housing financiers and microfinance firms, posted huge gains. “NBFCs
are clear beneficiaries. For investors in banks, the provision of higher liquidity and relaxation in provisioning norms are welcome,” said Dhiraj Relli, MD and CEO of HDFC Securities.
Global investors also cheered the progress made by an experimental drug, developed by Gilead Sciences. It even helped the US outline plans to revive its economy.
Analysts said the signal towards reopening of the world’s largest economy, and possibility of effective treatment, were big sentiment boosters.
have now conclusively entered the bull territory. The Sensex
and the Nifty
have risen 21 per cent from the lows of 25,981 on March 23.