Financials, pharma stocks gain
The specific liquidity enhancing measures unveiled by the Reserve Bank for microfinance institutions and healthcare sector companies boosted market sentiments and led to sharp gains in financials and pharmaceutical stocks on Wednesday.
The Sensex gained 424 points, or 0.88 per cent, to close at 48,677 while the Nifty-50 gained 121.35 points, or 0.84 per cent, closing at 14,617.85.
"Pharma gained the most as relief measures announced by the RBI included provision of term liquidity facility of Rs 50,000 crore on priority basis for the healthcare sector. Apart from this, the announcements included a special Rs
10,000 crore long-term repo operation to support small finance banks onlend to MSEs, and a resolution framework 2.0 for individuals, small businesses and MSMEs, which lifted the banking stocks," said Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services.
The BSE Bankex gained
1.67 per cent and the Nifty Bank Index gained 1.59 per cent. The Nifty Pharma gained 4.12 per cent. The Nifty PSU Bank gained 1.47 per cent as yield of government securities softened after the RBI announced purchase of government securities worth Rs 35,000 crore on May 20 .
IDBI Bank gained 4.40 per cent after the Union Cabinet approved divestment of government and LIC's stake in the bank.
The pharma gainers on the NSE included Lupin
(13.71 per cent), Aurobindo Pharma (7.08 per cent), Sun Pharma
(5.87per cent), Cadila Healthcare (5.78 per cent), Torrent Pharma (4.66 per cent),Alkem Laboratories
(3.98 per cent), Biocon
(2.41 per cent) and Dr Reddy's Laboratories (2.01 per cent).
Pfizer gained 3.99 per cent as reports said Indian drug regulator had approved import of Covid vaccine by the company.
Foreign portfolio investors sold equities worth Rs 1,110.50 crore for the fourth session in a row.