Shares of asset management companies (AMCs) and other financial sector related firms zoomed up to 12% on Monday after the Reserve Bank of India announced a ₹50,000 crore special liquidity facility for mutual funds.
RBI's announcement follows Franklin Templeton Mutual Fund's move to close six debt schemes amid liquidity crunch. Nippon Life India Asset Management jumped 11.38% and HDFC Asset Management Company gained 5.26% on the BSE.
Other financial stocks also witnessed demand, with ICICI Prudential Life Insurance Company rising 12.20%, Max Financial Services 8.32%, Manappuram Finance 6.86%, HDFC Life Insurance Company 6.84%, The New India Assurance Company 6.53% and Mahindra & Mahindra Financial Services 2.28%.