India Stocks Rise as RBI Unveils Measures to Cope with Covid
(Bloomberg) -- India stocks ended higher after the central bank unveiled measures to further support the economy as coronavirus cases continue to surge.
The S&P BSE Sensex ended 0.9% higher at 48,677.55 in Mumbai while the NSE Nifty 50 Index advanced 0.8%. All but one of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of healthcare companies.
Additional liquidity of 500 billion rupees ($6.8 billion) to banks for lending to vaccine makers, hospitals and providers of health services, as well as easier rules for restructuring loans of small businesses were among measures outlined by Reserve Bank of India Governor Shaktikanta Das in his unscheduled address today.
“There has not been any major impact from an equity market perspective,” said Nikhil Kamath, chief investment officer at True Beacon, an India-based hedge fund. “However, the term liquidity facility for access to emergency health services is positive overall.”
Read: Reserve Bank of India’s Loan Relief Measures: TOPLive Transcript
A gauge of healthcare stocks gained 3.1% to a record, while the S&P BSE Bankex recovered after three days of losses to add 1.7%. The benchmark 10-year yield was down 4 basis points to 5.98% as Das announced a second tranche of bond purchases for May 20. The rupee fell 0.1% to 73.92 to a dollar.
The benchmark Sensex had declined for the previous three sessions as coronavirus cases climb to new records. The Covid-19 wave will probably worsen before it starts to taper off sometime later this month, forecasters warn.
- Sun Pharmaceutical Industries Ltd. (SUNP) +5.9%
- Axis Bank Ltd. (AXSB) +2.4%
- IndusInd Bank Ltd. (IIB) +2.3%
- Bajaj Finance Ltd. (BAF) -1.8%
- Hindustan Unilever Ltd. (HUVR) -0.6%
- India Health Care Stocks Rise as Central Bank Eases Lending
- Indian Bank Stocks Rise as RBI Unveils Loan Relief
- India Central Bank Unveils Loan Relief to Tide Over Pandemic
- Covid Forecasters Warn India Deaths May Double in Coming Weeks
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