Indian MF managers jump after RBI announces $6.5 bln liquidity facility

Nippon Life India Asset Management

27/04/2020 06:15

April 27 (Reuters) -    ** Shares of Indian mutual fund
managers rise after the country's central bank announces 500 bln
rupees ($6.58 bln) special liquidity facility for mutual funds
(SLF-MF)
    ** Asset managers reverse session's losses to trade higher:
HDFC Asset Management Co  HDFA.NS  rises as much as 6.48%, while
Nippon Life India Asset Management Ltd  NIPF.NS  jumps as much
as 12.7%, its biggest one-day gain since March 2019
    ** Volatility in capital markets due to coronavirus pandemic
has imposed liquidity strains on high-risk debt mutual funds -
Reserve Bank of India (RBI)  urn:newsml:reuters.com:*:nFWN2CE00W
    ** RBI announces SLF-MF to ease liquidity pressures in
mutual funds, to conduct 90-day repo operations at fixed repo
rate
    ** Scheme to begin on Monday and end on May 11
    ** Funds availed under the SLF-MF shall be used by banks
exclusively for meeting the liquidity requirements of mutual
funds - RBI
    ** NSE Banking index  .NSEBANK  gains nearly 3% on
announcement; most banks have units that manage mutual funds

($1 = 76.0450 Indian rupees)

 (Reporting by Derek Francis in Bengaluru)
 ((derek.francis@thomsonreuters.com; +91-9986311363 and
@derekfrancis089 on Twitter;))