Dalal-Street Cheers RBI Monetary Policy, Sensex Jumps 460 Points
Monetary Policy from the Reserve Bank of India (RBI) boosted the Indian equity markets on Wednesday, April 7 as banks and financial stocks cheered the announcement of repo rates being kept unchanged. The central bank also emphasized maintaining liquidity in the market for better functioning of the economy, something reflected in the jump seen in the markets. The 30-share pack jumped 460 points led by advances in banking and financial stocks and closed at 49,661.76, while the key index Nifty-50 added 135.50 points to close at 14,819.
Sensex clocked gains in 27 shares out of 30 in the pack with Reliance, SBI, and Bajaj Auto being the top index contributors. Overall, in the market, around 1842 shares closed higher, and 1072 closed with losses on Wednesday.
Index heavyweight Reliance Industries added over a per cent after muted movement in the previous sessions. Yesterday (April,6), the company’s subsidiary Reliance Jio had signed an agreement with Bharti Airtel for spectrum rights in some parts of the country. This news certainly brought some cheers to the stock price which hit the day’s high of Rs 2,046.90 from its previous close of Rs 1,984.30.
Banks and Auto stocks were the top gainers today as they each added over a per cent. Shares of IDFC First Bank and Bandhan Bank gained over 3-4 per cent in the intraday session, while Ashok Leyland and Motherson Sumi zoomed over three per cent in the Auto space.
Earlier today, Barbeque-Nation registered its debut on the bourses at a discount of 1.6 per cent at Rs 492 against its issue price of Rs 500. However, the stock surged to hit the 20 per cent upper circuit following the uptrend in the overall markets and closed at Rs 587.80, up 17.56 per cent.
The Bombay Stock Exchange added Rs 18,56,366 crore for the Indian corporate sector in FY21 via the listing of equities, bonds, REITs, InvITs, and commercial papers, said BSE in a filing on April 6. The amount was said to be Rs 12,14,680 crore in a year-ago period. The funds have climbed nearly 52.82 per cent from FY20 to FY21 amid the wave of pandemic that spooked the equity markets in March'20.
Meanwhile, in the IPO market, Clean Science and Technology has filed their draft papers with the market regulator for their 1,400 crore IPO. The offer is completely an offer-for-sale by the existing promoters and shareholders of the company. The company is engaged in the manufacturing of specialty chemicals.
Shriram Properties also filed its documents with SEBI for their Rs 800 crore IPO. The company is a leading real estate firm focused on developments in South India. This is the second company after Lodha Developers entering the IPO market in the current year.
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