Sensex rises by 415 points, Nifty by 127 after RBI announces mutual fund liquidity package

Responding to RBI's Rs 50000-crore liquidity support to mutual funds, Indian market indices rose on Monday marginally amid the ongoing Coronavirus (COVID-19) lockdown. As per PTI, Sensex closed at 31,743.08, rising by 415.86 points, while Nifty rose by 127.90 points closing at 9282.30 points. Market reports state that 1286 shares have advanced, 1076 shares declined, and 180 shares are unchanged.

Markets continue to slump amid COVID lockdown; Sensex loses 535 pts, Nifty below 9200

Sensex rises by 415 points

Moreover, reports state that all sectors closed higher - especially - banking, IT auto and FMCG. Previously, automobile and banking sectors were pulling down market indices. In the early hours of the day, Sensex umped 675 points or 2.15 percent at 32,002 while the Nifty 50 edged higher by 188 points or 2.06 percent at 9,343 at around 10.15 AM, according to ANI.

Equity Indices trading in green on Monday; Sensex jumps over 600 points, Nifty above 9300

RBI's mutual fund boost

Earlier in the day, the Reserve Bank of India announced Rs 50,000-crore liquidity support for mutual funds. The scheme which is in force currently till May 11, 2020, will be reviewed by RBI depending on market conditions. The central bank's move comes after Franklin Templeton closed six debt mutual funds last week funds stating that liquidity in the bond market has dried up, amid the COVID-19 pandemic.

RBI said, "Heightened volatility in capital markets in reaction to COVID-19 has imposed liquidity strains on mutual funds (MFs). These have intensified in the wake of redemption pressures related to the closure of some debt MFs and potential contagious effects therefrom." It added that the stress is confined to the high-risk debt MF segment at this stage, while the larger industry remains liquid.

RBI announces Rs 50,000 cr special liquidity for mutual funds after Franklin Templeton row 

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