By 10:00 am, Sensex was trading 680 points or over 2 per cent higher, while Nifty was up almost 2 per cent.
It may be noted that all sectoral indexes are trading in green and analysts said that Nifty could climb further during the day. (Photo: Reuters)
- Markets rallied in early trade on Monday tracking positive Asian cues
- RBI’s announcement of a special liquidity facility for Mutual Funds worth Rs 50,000 crore also cheered market investors
- The earrings season has also kept investors busy
Domestic share market on Monday opened in green as investors tracked gains in Asian markets, which rose due after central banks around the world decided to push in more stimulus to tackle to Covid-19 economic losses.
At around 9:35 am, Sensex was up over 550 points while Nifty surpassed 9,300 points in what seems to be a positive start to Monday’s trading session. By 10:00 am, Sensex was trading 680 points or over 2 per cent higher, while Nifty was up almost 2 per cent.
The earrings season has also kept investors busy with a few results expected today including Induslnd Bank and Ambuja Cement.
According to reports, Induslnd Bank may see a deep fall in profit due to a slew of factors in the wake of the Covid-19 pandemic. Meanwhile, mid-tier IT firm Mindtree shares zoomed almost 9 per cent as it exceeded Q4 expectations.
It may be noted that all sectoral indexes are trading in green and analysts said that Nifty could climb further during the day.
MF Damage control
Meanwhile, the Reserve Bank of India has announced a Rs 50,000 crore special liquidity facility (SLF) for Mutual Funds in the wake of the recent Franklin Templeton episode.
RBI said that under the special liquidity fund, it shall conduct repo operations of 90 days at a fixed rate. It also said banks are open to submit their bids to avail funding. It may be noted that the scheme is available from April 27 to May 11, 2020.
The development is expected to provide relief to mutual fund investors just a few days after a massive jolt to the industry.
While the government remains focused on tackling the economic distress caused by Covid-19, experts and industry bodies are seeking an urgent relief fund along with GST concessions for businesses that have suffered the most during the lockdown and other small businesses.
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