Sensex ended over 150 points higher today
Sensex ended over 150 points higher today

Sensex extends gains to fourth day as RBI announces steps to boost credit growth

  • IndusInd Bank, SBI and Bajaj Finance were among the top gainers
  • Banks lead gains with Nifty Bank index rising nearly 1%

Indian markets extended gains today to the fourth day after the Reserve Bank of India relaxed conditions to boost credit growth to the real estate sector. The Sensex rose 163 points to 41,306 while Nifty ended at 12,133. Financials led the gains today with Nifty Bank index registering nearly 1% gain. Among the Sensex stocks, IndusInd Bank surged 5% while SBI and Bajaj Finance registered over 3% gain.

The RBI also exempted banks from setting aside cash of 4% of fresh loans for auto, home and small businesses.

"Today's monetary policy response is the most optimum in the current circumstances. By keeping the stance at accommodative, by granting CRR exemption against the loans given to the stressed sectors and extending a one-time restructuring for MSMEs, etc, the policy has strengthened the stimulus package announced by the Union Budget," said Rupa Rege Nitsure, group chief economist at L&T Financial holdings.

Elsewhere, shares of public sector unit ITI surged 10% after the company withdrew its 1,400 crore follow-on public offer, citing markets conditions.

Global markets were higher today despite the coronavirus outbreak in China claiming more lives. Investors welcoming another record close on Wall Street and strong US jobs data.

Investors remained hopeful that the outbreak, which has spread to more than 20 countries, can be contained and the economic impact will limited. Huge cash injections by the Chinese central bank into the country's financial markets have also soothed investor concerns. China's markets were up about 1% today. (With Agency Inputs)

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