After weeks of trading in red with deep cuts, with the marquee Sensex losing over 3,000 points in a month, things appear to finally look up. On Tuesday, January 28, the Indian indices zoomed at the bourses.
RBI’s Crucial Liquidity Injection
This came to pass after the Reserve Bank Of India (RBI), the central bank of India, announced new measures to inject liquidity into the markets.
The RBI announced Rs 60,000 crore OMO or open market operations, purchase auctions of government securities. Here, the RBI will buy government securities in the open market.
Sanjay Malhotra-led RBI will conduct these purchases in three tranches worth Rs 20,000 crore each.
Sanjay Malhotra-led RBI will conduct these purchases in three tranches worth Rs 20,000 crore each.
The open market operations auctions are slated to happen on January 30, February 13, and February 20.
The step comes ahead of the Union Budget on February 1, and RBI’s crucial MPC meeting, the last meeting of the fiscal year, between February 5-7.
Indian Markets Surge
When we take a look at the markets, the BSE Sensex, the oldest index in Asia surged by a significant 1.00 per cent or 754.97 points. This took the overall value of the index to 76,121.14 points.
When we look at the National Stock Exchange (NSE), the Nifty 50 index also increased in value in the intraday trade on January 28. The Nifty index rose by 191.30 points or 0.84 per cent.
The Nifty Bank faired even better, as the key banking index surged with gains of over 2 per cent in the day. The index increased in value by a huge 1,003.80 points or 2.09 per cent.
This took the overall value of the Nifty Index to 23,020, thereby making it past the 23k mark.
The Nifty Bank faired even better, as the key banking index surged with gains of over 2 per cent in the day. The index increased in value by a huge 1,003.80 points or 2.09 per cent.
This has taken the overall index closer to the coveted 50,000, with its current value at 49,068.45 points.
Axis bank was one of the biggest gainers with gains of over 4.40 per cent.
