Domestic stock markets on Friday, April 17, opened higher with the BSE Sensex rising over 1,000 points. The gains came ahead of the briefing by the Reserve Bank of India's (RBI) Governor Shaktikanta Das.
Gains in early trade are also a result of improved performance in Asian markets after President Donald Trump's planned to gradually reopen the US economy offset data that showed China suffered its worst economic contraction on record due to the coronavirus pandemic.
Asia shares up
Investor sentiments were boosted on hopes of further support for liquidity easing in the economy. The rise in the Asian indices also supported the domestic markets, analysts said.
At 9.32 am, Sensex was trading at 31,648.99, higher by 1,046.38 points or 3.42 per cent from the previous close 30,602.61. It had opened at 31,656.68 and has touched an intra-day high of 31,711.70 and a low of 31,512.11.
The Nifty50 on the National Stock Exchange (NSE) was trading at 9,283.80, higher by 291 points or 3.24 per cent from previous close.
RBI cuts reverse repo rate
In the wake of the coronavirus crisis in the country, the RBI cut its reverse repo rate by 25 basis points from 4 per cent to 3.75 per cent on Friday, April 17. This is the second announcement that Governor Shaktikanta Das made to the media since the nationwide lockdown was imposed from March 25.
In a speech, RBI Governor Shaktikanta Das said the central bank had cut its reverse repo rate to 3.75% with immediate effect, in a bid to push banks to deploy excess funds within the system toward lending, and help revive growth.
(With agency inputs)