RBI Governor Shaktikanta Das
RBI Governor Shaktikanta Das

The Market Benchmark Index Sensex opened 207.64 points higher by 0.66% at 31,597.71 on Tuesday from the previous trade after the markets crashed on Monday. The broader Nifty 50 also looked slightly better rallying 65.80 points up by 0.72% at 9,263. However, it could not cross it 10,000 mark in the opening session on Tuesday.

The markets looked slightly better after RBI Governor held a press conference on Monday in the wake of spread of coronavirus in India affecting the financial markets.

Top gainers in the market were Tata Steel, Induslnd Bank, Sunpharma, ONGC, ITC, Reliance, Maruti, HCLTECH, Bharti Airtel, Nestle, ICICI Bank, Bajaj Auto while IINFY, Bajaj Finance, TCS, L&T, Kotak Bank, Titan, HDFC, and HDFC Bank were in red on the BSE in the opeing session.

On Monday, the Sensex was down by over 2,700 points in the closing session on Monday attributing to the spread of coronavirus in India.

The Reserve Bank on Monday announced it will conduct the fifth tranche of the long-term repo operations (LTROs) for Rs 25,000 crore on March 18, in its bid to secure adequate liquidity to the troubled financial markets.

The central bank also announced the details of the second dollar-rupee swap for USD 2 billion on March 23.

Taking into consideration the requirement of US dollars in the market, it has been decided to undertake another 6-month dollar sell/buy swap auction to provide liquidity to the forex market for USD 2 billion.

He aslo assured that crippled Yes Bank has enough funds to meet any requirements and promised that the central bank will step in with additional liquidity support if needed.

The assurance comes at a time when there is a worry that once the moratorium is lifted on March 18 evening, there can be a run on the bank, putting more liquidity pressure.

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