The Indian stock market is trading on a positive note after RBI Governor Shaktikanta Das' address wherein steps were taken to keep the economy stable amid second COVID wave. At 11:33 hours, Sensex is up 196.81 points or 0.41% at 48450.32, and the Nifty up 58.80 points or 0.41% at 14555.30..
On-tap liquidity of Rs 50,000 crore at repo rate is being opened till March 31, 2022. Under the scheme banks can support entities including vaccine manufacturers, medical facilities, hospitals and also patients. Such lending will get priority sector classification.
Reserve Bank of India (RBI) Governor Shaktikanta Das on May 5 announced the second purchase of government securities under the Government Securities Acquisition Programme (G-SAP) 1.0 to be conducted on May 20, 2021.
In the second purchase under G-SAP, the government will buy securities worth Rs 35,000 crore. The RBI had first announced G-SAP 1.0 in its monetary policy on April 7, 2021.
Das also listed out other measures from the RBI to counter the second wave of the pandemic.
Among the sectors, the PSU Bank index was up over a percent led by Union Bank of India and Canara Bank which jumped over 3 percent each followed by Bank of Baroda, Bank of India, SBI and Indian Bank.
Nifty Bank was also trading in the green with gains from IndusInd Bank, IDFC First Bank, Kotak Mahindra Bank, ICICI Bank, HDFC Bank and Axis Bank.
According to brokerage firm ICICIdirect, Bank Nifty witnessed a mixed session where it opened higher but during the second half witnessed a sharp selloff. In the banking space, healthy buying was seen in PSU banks. They may outperform in coming session.
"As per options chain, Call options have noteworthy OI. Hence, Bank Nifty is likely to face resistance at higher levels," the research firm added.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.