Investors joined industry groups, fund managers and bankers to welcome the RBI’s pro-growth monetary policy on Wednesday, with Bankmark S&P BSE Sensex picking up.
The 30-share Sensex jumped 460.37 points or 0.94% to close at 49,661.76. Banks gained 2.25% to State Bank of India and ICICI Bank gained 2.05%.
“Speed [in the market] The number of banking counters has started increasing rapidly due to the acceleration in the monetary policy of RBI, ”said Samit Chavan, Chief Analyst-Technical & Derivatives, Angel Broking. He further added, “There were moves mainly towards the banking space.”
‘Clear guidance’
SBI Chairman Dinesh Khara said, “The RBI policy statement is a clear commitment to continue guaranteed uncertainties in the market, including liquidity support and clear guidance through the current COVID boom.” “Allowing banks to lend through NBFCs and lending under PSL guidelines will give broad-based lending,” he said.
The RBI on Wednesday emphasized that as part of maintaining its policy stance, it would stick to its commitment to ensure adequate system liquidity. As part of its liquidity measures, it stated that it was in place in a secondary market, the G-Sec Acquisition Program or G-SAP 1.0.
Vinod Nair, head of research, Geojit Financial Services, said, “The Indian market is affected by the RBI’s long-term stance until the economy returns to normal.” “A major impetus is the program to ensure liquidity and to buy the G-sec of 1 lakh crore up the long-term yield curve. RBI’s decision to maintain its high GDP growth forecast also helped calm the market from its fears about the second wave of transition, ”he said.
CII Director General, Chandrajit Banerjee said, “With many challenges, due to rising uncertainty from the second wave and rising risks of inflation, the RBI did well to maintain policy rates.”
Help cut premiums
Bajaj Allianz Life Insurance commented about CIO’s acquisition program of secondary market G-Sec, saying “this indicates an intention to create a calendar” [RBI’s] G-Sec will help manage the purchase and yield curve and may also help reduce the term premium. “
AK Das, Managing Director and Chief Executive Officer, Bank of India stated that the policy announcement represented a balanced approach to deepening economic revival, to ensure the gradual growth of financial markets and price movement to manageable levels To be maintained.
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