Sensex rallies 460 pts as D-St cheering policy
Bombay: the RBIthe decision to support the government’s huge borrowing program and manage the yield bond market boosted investor sentiment on Wednesday as general buying helped sensex closing 460 more points at 49,662 points. ICICI Bank, Infosys and Reliance contributed the most to sensex’s gains with 27 of its 30 constituents closing higher.
According to Gaurav Dua, SVP, Head of Capital Markets Strategy, Sharekhan, the RBI has maintained the status quo as expected on policy rates and reassured the market of its commitment to maintain an accommodative policy until the outlook. sustained economic recovery are guaranteed. “Easing yield curves and a commitment to keep interest rates low with abundant liquidity are also positive for equity markets,” Dua said. The consistency and continuity of the monetary policy stance should support positive market sentiment, he said.
The gains in sensex are due to a net purchase of Rs 227 crore by foreign funds and an investment of Rs 381 crore by domestic funds, BSE data showed.
In its post-policy statement, the RBI said that to ensure financial conditions conducive to economic recovery, the central bank will purchase gilts worth Rs 1 lakh crore during the current quarter. The first purchase under this plan would be Rs 25,000 crore on April 15, 2021.
The central bank’s accommodative policy also led to a rally in the bond market, with the yield on benchmark 10-year gilts closing at 4 basis points (100 bps = 1 percentage point) down to 6.08%. 30 years G-Sec the yield also fell 4 bps to 6.74%, while the yield on 10-year government bonds and AAA-rated corporate bonds fell 7 bps to 6.73%.
According to Gaurav Dua, SVP, Head of Capital Markets Strategy, Sharekhan, the RBI has maintained the status quo as expected on policy rates and reassured the market of its commitment to maintain an accommodative policy until the outlook. sustained economic recovery are guaranteed. “Easing yield curves and a commitment to keep interest rates low with abundant liquidity are also positive for equity markets,” Dua said. The consistency and continuity of the monetary policy stance should support positive market sentiment, he said.
The gains in sensex are due to a net purchase of Rs 227 crore by foreign funds and an investment of Rs 381 crore by domestic funds, BSE data showed.
In its post-policy statement, the RBI said that to ensure financial conditions conducive to economic recovery, the central bank will purchase gilts worth Rs 1 lakh crore during the current quarter. The first purchase under this plan would be Rs 25,000 crore on April 15, 2021.
The central bank’s accommodative policy also led to a rally in the bond market, with the yield on benchmark 10-year gilts closing at 4 basis points (100 bps = 1 percentage point) down to 6.08%. 30 years G-Sec the yield also fell 4 bps to 6.74%, while the yield on 10-year government bonds and AAA-rated corporate bonds fell 7 bps to 6.73%.