MUMBAI: A prompt and timely monetary policy response by the Reserve Bank of India to the wrecking COVID-19 wave gave Indian equities a booster shot, lifting the benchmark indices 0.88 per cent higher on Wednesday. The RBI's well guarded measures which, analysts believe, are tuned to the evolving situation may support the economy going forward.
Earlier today, the apex bank announced a COVID-19 healthcare package of Rs 50,000 crore for vaccine makers, medical equipment suppliers, hospitals and patients in need of funds. Besides, individual borrowers and small businesses with loan outstanding of up to Rs 25 crore, and who did not avail for moratorium or restructuring relief last year, can ask for restructuring of their loans for up to 2 years.
Furthermore, the RBI will also have a special long-term repo operation window for small finance banks, whereby the banks can borrow funds up to Rs 10,000 crore at repo rate for deploying for fresh loans SFBs, to be deployed for fresh lending of up to Rs 10 lakh per borrower.
The announcements received a thumbs up from market participants who lapped up pharma and bank stocks. The Nifty Pharma index climbed over 4 per cent with individual stocks such as Lupin, Aurobindo Pharma, Cadila Healthcare, Sun Pharma, and Torrent Pharma soaring between 5 per cent and 14 per cent. (IANS)