It is worth mentioning that almost all sectoral indices are trading higher with Nifty Bank surging the most in anticipation of an interest rate cut.
Market movement during the day will depend highly on RBI’s announcement on relief measures. (Photo: Reuters)
- Sensex reclaimed 31,000 points briefly after climbing over 1,000 points
- Nifty also breiefly reclaimed 9,000-mark before falling
- Investor remain hopeful for relief measures as market volatilty remains high
Domestic markets on Friday surged in morning trade ahead of the Reserve Bank of India’s press briefing, as investors pin hopes on a possible rate cut or any other monetary measure to ease the situation.
At around 9:30 am, BSE Sensex was up by 1,085.15 points or 3.62 per cent at 31,031.92, while NSE Nifty was trading 319.40 points or 3.70 per cent higher at 8,960.85.
By 9:35 am, Sensex had reclaimed 31,000 points while Nifty had reclaimed 9,000 points, trading 390 points higher. But both benchmarks failed to hold the gains as volatility remains high.
It is worth mentioning that almost all sectoral indices are trading higher with Nifty Bank surging the most in anticipation of an interest rate cut. Yes Bank has surged over 15 per cent after its board approve further capital raising to the tune of Rs 5,000 crore.
Market movement during the day will depend highly on RBI’s announcement, as the government’s economic relief package, announced on Thursday, was mostly oriented to shield the poor population in India during the crisis.
However, the 1.70 lakh crore relief package had little in it for ailing industries and sectors that have pleaded with the government to offer some form of monetary aid or relief.
According to Bloomberg, there are high chances that RBI will announce a final plan to support growth during the Covid-19 crisis. Analysts also say that the RBI is going to announce measures which will further complement the government’s relief package.
There are many possibilities including a repo rate cut, OMOs, CRR cut, liquidity injection or a moratorium on EMIs and loan repayments.
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