Banking and financial stocks led the rally in equities on Friday, after the Reserve Bank of India (RBI) announced a slew of measures to improve liquidity in the system. The benchmark Sensex gained 986.11 or 3.22% to close at 31,588.72. The Nifty rallied 3.05% or 273.95 points to close at 9266.75. Nifty Bank was up by 6.6% and the top gainers on the index were Axis Bank, Bandhan Bank, Federal Bank, ICICI Bank and IDFC First Bank. Axis bank and Bandhan bank were up by 13.9% and 11% respectively. Federal Bank and ICICI Bank were up by 9.9% and 9.6%. Shares of IDFC First Bank ended the day 9.3% higher.
Dalal Street cheered the RBI’s announcement and ended the day on a positive note. However, experts said that the move to start re-investing in banking stocks would be gradual. Foreign Portfolio Investors (FPIs) remained net sellers in the Indian market pulling out $ 182.14 million from Indian equities. Domestic Institutional Investors (DII) also bought shares worth $69.9 million. Following the RBI’s announcement, the rupee ended the day stronger against the dollar at 76.42.
Nifty50 closed higher at 9266.75 level, 273.95 points, or +3.05 per cent. Nifty Support : 9200 and 9050 Resistance : 9300 and 9400.
