Indian stock indexes extended gains in midday trading due to the purchase of interests in banks, pharmaceuticals, information technology and PSU banking stocks after the Reserve Bank of India announced measures, including the provision of a term liquidity facility of Rs 50,000 crore for health care and a moratorium on individual borrowers and small businesses. The Sensex rose 473 points to 48,727 and the Nifty 50 Index climbed above its important psychological level of 14,600.
At 1:12 p.m., the Sensex was up 472 points to 48,725 and the Nifty 50 Index advanced 126 points to 14,623.
Reserve Bank of India (RBI) Governor Shaktikanta Das said the central bank has asked lenders to provide a new moratorium for certain small borrowers, which will be available to individuals and small and medium enterprises which did not benefit from restructuring in 2020.
“Small businesses and financial entities at the local level are the most affected by the second wave of infections,” Das said, announcing a series of other measures to improve liquidity and boost lending to various sectors in need.
Both indices had closed at their lowest level in more than a week on Tuesday, as national coronavirus cases passed the grim milestone of 20 million.
However, the RBI governor said the second wave of COVID-19 was not “insurmountable” and that the future remained “bright.”
Nine of the 11 sector gauges compiled by the National Stock Exchange were trading higher, thanks to the nearly 4% gain in the Nifty Pharma index. The Nifty PSU Bank, Private Bank, Bank, Financial Services and IT indices also rose 1-2 percent.
In contrast, some FMCG and real estate stocks were under selling pressure.
Mid- and small-cap stocks also saw buying interest, with the Nifty Midcap 100 advancing 0.65% and the Nifty Smallcap 100 index advancing 0.5%.
Sun Pharma was Nifty’s top winner, stock rose 5.2 percent to Rs 678. UPL, IndusInd Bank, Kotak Mahindra Bank, Axis Bank, Hindalco, Bharti Airtel, Dr Reddy’s Labs, Wipro, ICICI Bank , ONGC, Divi’s Labs, TCS, Titan and HDFC Bank also rose from 1.3 to 4%.
On the other hand, Adani Ports, Bajaj Finance, Hindustan Unilever, SBI Life, Larsen & Toubro, Asian Paints, Grasim Industries and NTPC were among the notable losers.
The overall scale of the market was positive as 1,750 stocks rose while 1,066 fell due to BSE.