Nifty Rises For 7th Day, NBFCs Shine

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Mumbai: The NSE Nifty 50 Index extended its winning streak to 7 days in a row and marched towards the 11,000 mark. Nifty Bank Index rallied more than 100 points to close higher for 7th day in a row. Small and Midcap indices outperformed with a gain of over 1% each. Nifty Pharma and IT Index were the only two sector indices to close lower for the day while Nifty Realty and Nifty PSU Bank Index gained 3% each. Indiabulls Housing Finance gained more than 8% to become the top Nifty gainer.

The recent market rally has come on the back of declining oil price which fell over 5 percent in overnight trade and the Indian rupee continued to appreciate for the third straight day. The Federal Reserve is expected to deliver a fourth rate hike of the year later on Wednesday.

Today, the entire NBFC sector was buzzing up anywhere between 4-7% each, post the RBI overnight announcement to further make OMO purchases of over Rs 50,000 crore in Jan 2019. Bofa-ML says within days of assuming office, the new RBI Governor has swiftly defused the liquidity crunch arising out of delayed RBI OMO.

Analyst says this move will provide necessary liquidity to the sector. Additionally, reports suggest that NBFCs which were going slow on loan disbursal earlier, have eased their stance and begun to open their purse strings as their liquidity positions are improving with mutual funds resuming lending and their asset sales are improving cash positions.