Sensex rises 416 pts; financial stocks steal the show

Sensex rises 416 pts; financial stocks steal the show

Representative image: PTI Photo

Equity benchmark Sensex settled 416 points higher on Monday, led by gains in financial stocks as RBI's Rs 50,000-crore stimulus to mutual funds and positive cues from global markets buoyed investor sentiment.

Though, after rallying over 700 points during the session, the BSE gauge pared some of its intra-day gains. The 30-share index finally settled 415.86 points or 1.33 per cent higher at 31,743.08.

Similarly, the NSE Nifty closed 127.90 points, or 1.40 per cent, to 9,282.30.

IndusInd Bank was the top gainer in the Sensex pack, rallying over 6 per cent, ahead of its earnings announcement. Axis Bank, Kotak Bank, ICICI Bank and Bajaj Finance too surged up to 5 per cent.

On the other hand, NTPC, M&M, HDFC Bank, Bharti Airtel and ITC were the laggards.

The Indian market started the week on a positive note tracking positive Asian peers as hope for more monetary policy easing by global central banks gained further traction after Bank of Japan stepped up its stimulus to contain virus shock to its economy, Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi, said.

During the day the positive momentum further strengthened as the Reserve Bank of India announced a special liquidity facility of Rs 50,000 crore for mutual funds, with an aim to ease liquidity pressures on mutual funds, he added.

"With a view to easing liquidity pressures on MFs, it has been decided to open a special liquidity facility for mutual funds of Rs 50,000 crore," the RBI said.

The central bank also stressed that it is vigilant and will take whatever steps are necessary to mitigate the economic impact of COVID-19 and preserve the financial stability.

Some profit-booking at the fag-end of the session, however, pulled key indices from the day's highs, traders said.

On the currency front, the rupee rose 21 paise to provisionally close at 76.25 against the US dollar.

Meanwhile, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with significant gains, while those in Europe were trading on a positive note.

Global oil benchmark Brent crude futures slump 4.03 per cent to USD 23.81 per barrel.

Global tally of coronavirus infections has crossed 29.7 lakh, with over 2 lakh deaths.

Death toll in India rose to 872, while COVID-19 cases climbed to 27,892, as per health ministry data. 

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