The banking stocks such as State Bank of India, ICICI Bank and HDFC Bank led the charge among the banking space after the Reserve Bank of India kept the repo rates unchanged at 6%.
Shares of India’s top banks which came under pressure yesterday ahead of the outcome of repo rate cut/hike by RBI regained momentum in today’s trade. The banking stocks such as State Bank of India, ICICI Bank and HDFC Bank led the charge among the banking space after the Reserve Bank of India kept the repo rates unchanged at 6%. Earlier yesterday, The Urjit Patel led 6-member Monetary Policy Committee left the repo rate and reverse repo rate unchanged at 6% and 5.75% respectively.
Shares of ICICI Bank and HDFC Bank contributed the most to the Sensex upsurge today across all the banking constituents. Collectively these two stocks alone added about 45 points to the index out of the 205-point gain. The banking stocks which are leading the gains include ICICI Bank (up 1.34%), Yes Bank (up 1.29%), Bank of Baroda (up 1.18%), PNB (up 1.1%), Federal Bank (up 0.93%), SBI (up 0.93%), IDFC Bank (up .56%), Axis Bank (up 0.4%), Canara Bank (up 0.36%) and HDFC Bank (up 0.36%) while Kotak Mahindra Bank and IndusInd Bank lose up to 0.2%.
Meanwhile, Sensex and Nifty opened almost unchanged in green but quickly extended the gains on Thursday on the back of value buying after an 8-day negation which led the key benchmark indices to drop by 3%. BSE Sensex jumped 258.91 points to hit the day’s high of 32,856.09 while NSE Nifty edged up 84.25 points to mark the day’s high at 10,128.35. Investors seemed to have taken a sigh of relief after macroeconomic data-packed week ended yesterday with RBI fifth bi-monthly monetary policy keeping the repo rate unchanged at 6%. All the sectoral indices of NSE traded in the green with Nifty Auto, Nifty Metal, Nifty Media, Nifty PSU Bank index leading the gains.
In a major development yesterday, the Reserve Bank of India kept the repo rate unchanged at 6% in its latest credit and monetary policy review, as was widely expected given the concerns on the rising headline inflation and firm global crude oil prices. The RBI’s 6% repo rate, last revised in August, is lowest in seven years since November 2010. The GVA (gross value added) forecast for FY18 also kept unchanged at 6.7%.
RBI maintained its status quo with repo rate unchanged at 6%, reverse repo rate at 5.75%, bank rate at 6.25%. “On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.0 per cent,” the central bank said in its policy statement on Wednesday.